It’s no secret that consumers often consider factors such as price and name recognition when choosing a product. However, one factor that’s frequently overlooked is brand authenticity. In fact, 86% of consumers say that authenticity is a key factor when deciding what brand to engage with.
According to a new study published in the Journal of Consumer Research, people are more likely to view a brand as authentic if it’s perceived to be intrinsically motivated, that is, motivated by a set of inherent guiding values.
In recent years, people have begun to adjust the way they view brands. They’re no longer faceless products or services. We judge our brands like we judge other people: to see if they are social conscious, accessible, and trustworthy.
A brand can have a set of motivations, just like a person
Whether a brand is to be intrinsically motivated is determined by the motivation of the people who run the brand. This is because consumers tend to view brands as human entities. By attributing human qualities to a brand, consumers can judge them based on the characteristics and motivations of the people behind the brand.
There are two fundamental types of motivation: intrinsic and extrinsic. Brands that are
intrinsically motivated are concerned with more than just the profitability of their product. They’re passionate about making their product and invested in the satisfaction it brings to their customers. Companies that are intrinsically motivated tend to be viewed more favorably. On the other hand, brands that are extrinsically motivated are solely motivated by profit. This type of motivation can strongly damage the perception of a brand’s authenticity.
The current research predicted that when a brand presents itself as an entity that loves doing what they do, it will create an earnest image for their company. This image will then make consumers more likely to believe that they authentically and honestly produce what they advertise and bring to market.
The study & findings
The team of researchers created the following hypotheses to further examine the relationship between intrinsic motivation and perceived brand authenticity:
Hypothesis 1: A brand will be perceived as more authentic if they’re intrinsically motivated (e.g. motivated by a passion for making their product) as opposed to extrinsically motivated (i.e. solely motivated by profit).
Hypothesis 2: Consumers make the assumption that products from intrinsically motivated brands are of higher quality than products from extrinsically motivated brands.
This second hypothesis led to another question: Why do consumers make assumptions about product quality based on a brand’s motivation? The researchers suggested that because intrinsically motivated brands are viewed as more authentic, consumers are more likely to believe in the product characteristics that the company advertises. In other words, if a brand that is perceived to be authentic claims that their product is more effective and superior to other products in the market, people will trust what they say.
To test their hypotheses, the researchers performed two studies. In the first study, 56 undergraduate students in a marketing class were recruited to participate in an experiment consisting of two stages. The participants were evenly divided between the intrinsic motivation condition and the extrinsic motivation condition.
At the first stage, the participants were introduced to a granola brand called Sweet Things. They were instructed to read about the product’s ingredients, and to complete a four-item scale to assess their impression of the brand. In the second stage, the participants were reintroduced to the granola product, and those in the intrinsic motivation condition were told that the company was started by a young woman who loved making granola. Those in the extrinsic motivation condition were told that the company was created as an extension of a larger company that made other snacks using similar ingredients.
As a result, manipulating the brand’s motivation influenced perceptions of authenticity. In line with the first hypothesis, the origin story that displayed an intrinsic motivation for making granola resulted in a more authentic view of the company, compared to the extrinsically motivated origin story.
In addition, the granola product was given a higher quality rating in the intrinsic motivation condition, supporting the second hypothesis. This finding is especially significant considering the granola product from the extrinsically motivated condition originated from a larger company. A larger company would be assumed to have more resources to make higher quality products. Yet, participants were more swayed by the authenticity of a small, intrinsically motivated brand.
After providing evidence for their first two hypotheses, the researcher went further. They proposed a second factor that could explain why consumers assume that intrinsically motivated (and authentically-viewed) companies produce higher quality products. Consumers tend to have an optimistic view of products from companies that they perceive as authentic. This drives consumers to assume that products from these companies possess other positive qualities that are consistent with the brand’s image (even if these positive qualities aren’t advertised). This is outlined in the third hypothesis.
Hypothesis 3: Consumers believe that products from intrinsically motivated brands are more likely to possess (a) explicitly claimed attributes and (b) image-consistent attributes (even if these attributes aren’t explicitly claimed)
To test the third hypothesis, the team of researchers performed another experiment. A new set of participants were divided into an intrinsically or extrinsically motivated condition. In the first stage, participants were introduced to the granola company Sweet Things. The description of the product contained explicit claims such as “Sweet Things contains 100% whole grains”. Then, each participant filled out a 4-item scale to assess how authentic they believed the company was.
In the second stage, same as the previous study, participants read about the intrinsically or extrinsically motivated origin story of Sweet Things. Following this, participants were asked to read a list of claims made by the company. The first three claims came directly from the description that the participants were asked to read at the beginning of the study (e.g. “Sweet Things contains 100% whole grains”). Thus, these claims were believable.
The next three claims weren’t explicitly stated, but given an optimistic view of the company, they could be inferred (e.g. “Sweet Things’ granola is vegetarian and kosher friendly”).
The results of this experiment supported the third hypothesis. When Sweet Things was perceived to be intrinsically motivated (and therefore more authentic), participants were more likely to believe claims that weren’t explicitly stated by the company, such as the granola being vegetarian and kosher friendly. This suggests that when consumers view a brand as authentic, they assume the brand will possess attributes that are consistent with their image. This assumption holds regardless of whether the brand advertises these attributes. It’s akin to the halo effect in which a positive impression of a person in one area causes us to like them for other, unrelated reasons.
Overall, the researchers found that intrinsic motivation in making a product increased perceptions of brand authenticity. In turn, consumers were more likely to view products from authentic brands as higher quality. This is explained by the finding that consumers hold an optimistic view of products from authentic companies, making positive assumptions about the product, a sort of carry-over effect.
Results applied: How to boost your brand’s authenticity
In the age of consumer-demand for authenticity, being intrinsically motivated can be the key to increase both profitability and customer satisfaction. Profitability is the obvious goal for seeking direct competitive advantage in the market, but it shouldn’t be the sole pursuit of a brand, but rather a byproduct of good honest brand power.
This study’s findings makes it clearer than consumers want to interact with brands that are motivated by more than just making money. In fact, 62% of consumers say they’re more likely to buy from a brand if they’re passionate about their product and have ethical values that demonstrate realness. Conversely, nearly two-thirds of consumers around the world say they’re willing to avoid or boycott brands that don’t uphold their personal values.
Given the importance of brand authenticity, here are a few techniques for increasing your brand’s:
Affiliate your brand with a social cause: In recent years, there has been an undeniable rise in demand for brands to be more socially responsible. As of 2019, more than 70% of consumers believe that businesses should support social movements and 87% say they’d purchase a product because the brand advocated for a cause they believe in.
Increase your brand’s social responsibility by choosing a cause that aligns with your companies’ values. If you’re worried that advocating for a social issue might backfire, customers will have your back. Taking a stand on issues that affect your customers attracts the kind of loyalty that can’t be bought. That’s why the majority of consumers say they’d be willing to defend a brand from criticism if that brand has a purpose.
When debating what issue to choose from, according to business management author Archie B. Carroll, there are four corporate social responsibility categories that can guide your decision:
Environmental efforts: Corporations, regardless of their size, have a large carbon footprint. Making an effort to combat climate change and help sustain the environment will undoubtedly gain support from consumers.
Philanthropy: Businesses can show support for a social issue by donating money to support the cause. Donating to charity, although costly, is a great way to improve your brand’s image.
Ethical labour practices: As the media and technology become increasingly powerful, a company’s treatment of their employees can no longer be concealed. Considering 65% of consumers are attracted to brands that treat their employee’s well, advocating for ethical labour practices is a great way to attract customers.
Volunteering: Participating in volunteer work displays a genuine effort to create social change. Not only does it attract customers, when companies give back to the community through volunteer work, millennial employees are twice as likely to rate their corporate culture as positive.
Be upfront with customers: Authenticity is about holding your company accountable, even when things go wrong. Consumers want to see that your brand takes criticism seriously and is truly invested in providing the best product or service. Whole Foods, for example, is known for offering natural foods (at a higher price). However, in the past, the company hasn’t always accurately labelled their food. Rather than brush this under the rug, Whole Foods became the first national grocery chain to announce full GMO transparency with all future projects.
Transparency is quickly becoming an essential asset for success. It’s no wonder that 3 out of 4 consumers are willing to pay more for a product that offers complete transparency. If you want to improve your brand’s transparency, but are unsure where to begin, start by making sure your product aligns with your company promise. Research shows that consumers believe that most companies only deliver on their brands promises 50% of the time. However, for the highest performing companies, that number increases to 75%. By satisfying their customers, these brands have outperformed their competitors in profitability, revenue and relationship growth.
Brands can also increase transparency by engaging with customers through social media. Roughly three quarters of millennials state that having a social media presence improves their perception of a brand. Consumers also believe that social media can increase accountability for businesses. In addition, research shows that social media can improve a brands awareness, image and quality.
Do you have a social media account manager driving your digital strategy? If not, time to sift through some resumes.