Brand trust key driver of product purchases

Brand power: Consumer goods’ brands that have already built a high level of trust with consumers, will perform by evaluating where best to introduce sustainable products into the market to drive growth.

BRAND trust is still a key influence in consumer purchasing decision in Malaysia, according to the latest Global Corporate Sustainability Report released by Nielsen.

It states that over two-thirds of Malaysian consumers say they have purchased products which are made by a brand or company that they trust (65%) and that the purchased products are known for its high standards of safety (64%).

More than two-thirds of Malaysians are also more comfortable purchasing products known for its health and wellness benefits (64%) and as well as products which is made from fresh, natural or organic ingredients (60%).

“Consumer goods’ brands that have already built a high level of trust with consumers, would do well by evaluating where best to introduce sustainable products into the market to drive growth.

“Bigger global-consumer goods’ brands that overlook sustainability increase reputational and business risk. They are vulnerable to competitors of all sizes who will seize the opportunity to build trust with the predominantly young, socially-conscious consumers looking for products that align with their values,” says Connie Cheng, head of shopper insights for Nielsen in Southeast Asia, North Asia and Pacific.

When it comes to sales intent, commitment to the environment has the power to sway product purchase for 57% of consumers surveyed in South-East Asia. Nearly half of Malaysian consumers support products whose companies are known for being environmentally friendly (47%) and their products packaging are environmentally friendly (43%), above global average of 45% and 41%, respectively.

The report also revealed over two in five Malaysians consumers’ purchasing decision are also influenced by companies who are committed to either social values (43%) or the community they live in (46%). Retail data backs up the importance of these influences.

In 2014, 65% of total sales of consumer goods measured globally were generated by brands whose marketing conveyed commitment to social and/or environmental value.

The findings also revealed that more than one-third of Malaysian consumers feel that television advertisements highlighting a company’s commitment to positive social or environmental impact (35%) are influential in their path to purchase while 30% of the respondents would try the products after seeing an ad on television.

“Brands that actively reinforce sustainability commitment must amplify and socialise their message using multiple sources and distribution channels such as third-party validation (news coverage), annual reports, employee volunteerism, advertising or reporting actual work in the community on a website.

“While marketing good deeds is encouraged and expected by consumers, authenticity and credibility are essential. Care must be taken that the emphasis is placed on demonstrating good deeds versus self-serving promotion,” adds Cheng,

To gain better insight into the factors that influence consumer sentiments and purchase behaviour, Nielsen polled 30,000 consumers with Internet access in 60 countries across the globe.

Consumers were asked how much influence factors such as the environment, packaging, price, marketing and organic or health and wellness claims had on their consumer-goods’ purchase decisions— By Daljit Dhesi