This post appears courtesy of Weber Shandwick. The full study, Battle of the Wallets: The Changing Landscape of Consumer Activism, can be found here.

Weber Shandwick recently conducted a research study to learn more about the motivations of two different types of consumers: boycotters, those go against a brand, and BUYcotters, those who actively support companies and brands. The research not only studied the consumers’ perceptions on the impact of their actions, but also their expectations for future purchase decision-making. The findings’ implications offer guidelines for how companies should navigate what is known as “wallet activism.”

In partnership with KRC Research, Weber Shandwick conducted an online survey of about 2,000 consumer activists located in the US and in the UK asking why and to what extent they boycott or support brands. Respondents were 18 years or older and were individually screened for consumer activism. About 60 percent of the respondents said that they have taken some form of action. The remaining 40 percent who said they have not were randomly assigned to either the boycott or BUYcott group.

Findings
The study showed that while BUYcotters are currently fewer in numbers, BUYcotts are on the rise and appear to be gaining momentum to overtake the place of boycotts. The findings showed that 83 percent of consumer activists agree that is it more important than ever to show support for companies by buying from them, rather than participating in boycotts. According to the findings, 37 percent of BUYcotters said they plan to be more active in the next two years. Similarly, there is also a diminishing confidence in boycotts. Most respondents believe that spreading information about the actions of a company is just as effective as boycotting.

The study revealed demographics about BUYcotters, who skew younger. The study found that BUYcotters are also more likely than boycotters to be employed, women, and to be parents of children under the age of 18.

Reputation and affecting a company’s reputation plays a key role in consumer activism. The study showed that boycotts are primarily motivated to change the way the company does business or to harm the company’s reputation. BUYcotters, on the other hand, want to help the company’s reputation or help the company’s sales.

Both groups of consumers agreed with the sentiment that social media makes wallet activism more effective. However, BUYcotters are more likely than boycotters to have used a social media platform to share with others online about their most recent experiences or actions. An important note is that social media having a greater role for BUYcotters is not correlated to the fact that BUYcotters are younger in age. The study found that even the older demographic of BUYcotters are still more likely than boycotters to use social media with their recent actions. The study also found that while activist communities in both markets are equally involved in boycotts, BUYcotts are less common in the UK than in the US because fewer UK activists extend their influence.

According to further research, activist groups are also familiar entities within both communities, and there is evidence that suggests that vocal consumer activism engenders activist group familiarity. The study showed that among the approximately three-quarters of consumer activists who shared their recent boycott or BUYcott actions with others, awareness of activist groups was higher when compared to those consumers who keep their activism to themselves.

Lastly, the study found that consumer activists, specifically in the US, are much more likely to believe that CEOs have a responsibility to speak up about important issues. CEO activism is particularly important to the younger generation, and consumers are more likely to have favorable opinion of companies with CEOs who take a public position on current issues.

Implications
Based on the study, Weber Shandwick recommends the following strategies to navigate consumer activism and leverage growth of the BUYcott movement:

  • Consider how consumer activism, in the form of both boycotts and BUYcotts, is going to shape the company’s reputation.
  • Anticipate potential boycotts and plan strategically, such as identifying potential spokespeople from whom activists want to hear. For BUYcotting behavior, companies should cultivate the BUYcotter community and offer tools for consumers to easily share their positive experiences with the company.
  • Activate a cross-functional task force to manage and plan any potential responses. This can include both senior management and team members who can weigh all sides of consumer action.
  • Identify consumer activists, and get to know formal and informal consumer activist groups.
  • Communicate corporate social responsibility efforts through social and traditional media platforms.
  • Listen to what your customers are saying before taking action.

For the full study, please visit Weber Shandwick.


Jamie Honowitz is a communications assistant for the Institute for Public Relations. She is also a public relations student at the University of Florida. Follow her on Twitter @jamiehonowitz__.

Heidy Modarelli handles Growth & Marketing for IPR. She has previously written for Entrepreneur, TechCrunch, The Next Web, and VentureBeat.
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