3 days ago
Democrats more likely than Republicans to boycott brands, new survey
Why it matters: These murky expectations highlight the complicated environment businesses are currently operating in.
What they're saying: "Businesses need to understand how their brand aligns to current issues and the values that matter to their customer base," says Mallory Newall, vice president at Ipsos.
"Brands cannot please everyone, and wading into the political fray does not come without risk. It needs to be done in a strategic way. However, there are potential upsides if companies have a clear understanding of who they're talking to and who their customers are. Those who act inauthentically will lose ground in this environment," she added.
State of play: There's a disconnect in what consumers say and what they do.
53% of Americans say they are less likely to buy from a company that takes a stance they don't agree with, but only 30% actually do.
Between the lines: A company's political or social stances influence Democrats more than Republicans, per the survey.
Democrats are more likely to boycott (40%) than Republicans (24%), but they are also 2x more likely to go out of their way to support a brand that aligns with their values.
Target is the latest American corporation to grapple with these boycotts, following its retreat from diversity, equity and inclusion efforts.
Of note: Boycotting is a luxury afforded to those with disposable income, per the survey.
Households with incomes of $100k and above are 50% more likely to stop buying from a company they disagree with than those households making $50k and below.
What to watch: 67% of Democrats say they are closely tracking how companies respond to pending Supreme Court decisions, compared to 52% of Republicans.
There is more appetite across party lines for business commentary on economic issues — like inflation and trade policies — than other policy issues.
The bottom line: "The data suggest that Democratic consumers are much more likely to actually follow through on the threat to withhold or reduce spending when they disagree with brands during this era of complete GOP control," says Matt House, managing partner at CLYDE.
