Brand Equity Accounts for 52% of What Motivates Consumers to Purchase

While many factors play a role in what consumers buy, some are more important than others. As part of its annual Brand Fandom study, MarketCast analyzed 162 brands in 21 categories, focusing on the power of fandom to drive purchase decisions and its influence on bottom-line business health. 

The bottom line? Fandom truly matters: Nearly two-thirds of brands studied saw revenue rise and fall with brand fandom — where fandom grew, revenue increased by an average of 10.1%. A few more insights:

• Brand equity is the single biggest driver of purchase behavior, accounting for 52% of what motivates consumers to choose a certain product. 
• The other factors influencing shopping decisions include emotional appeal (17%), financial incentives (17%) and functional features (15%).
• But on a generational level, brands are more important to older consumers (Gen X and Boomers) than younger ones — and on the flip side, emotional and functional features are more important to Gen Z and Millennials vs. older cohorts. 

MarketCast notes that for Gen Z and Millennials, “it’s not just about loving a brand — it’s about what their purchase choices say about who they are.” Ultimately, while building brand fandom remains essential (especially for reaching older demographics), marketers must evolve their messaging to appeal to younger consumers' values and identities. The brands that can successfully blend emotional, functional and brand-driven appeal will be best positioned to win across generations.

Get more insights around brand fandom from MarketCast here.