Purpose is the new branding: understanding conscientious purpose-driven marketing and its impact on brand outcomes

Abstract

Purpose Consumers increasingly expect brands to have a social purpose. Yet, guidelines on how to effectively engage in conscientious purpose-driven branding are lacking. This study aims to better understand what the key drivers of a successful conscientious purpose-driven branding strategy are and what is its impact on key brand outcomes. Design/methodology/approach Data was gathered using a self-administered survey, answered by 670 young adults belonging to generations Y and Z. The study integrates in a single moderated-mediation model, tested using partial least squares structural equation modelling, the joint effects of cause–brand–consumer congruences, cause-brand authenticity and brand image, on consumers’ intention to purchase and recommend the brand. Findings Consumer-brand congruence mediates the path from cause-brand congruence and authenticity to brand image, which in turn impacts purchase and recommendation intentions, with authenticity playing a dominant role. Moreover, for consumers highly congruent with the cause/purpose, the direct effect of cause-brand congruence on brand image becomes non-significant and only works through consumer-brand congruence. Originality/value Theoretically, this study contributes to a better understanding of how and when conscientious purpose-driven branding can be effective. Its findings further advance prior research, by providing an alternative path anchored on cause-brand authenticity to explain positive effects of conscientious purpose-driven marketing on brand outcomes. Moreover, it challenges prior assumptions regarding the impact of consumer-cause congruence on the effectiveness of these strategies. Finally, it highlights that cause-consumer and brand-consumer congruencies also play a role, offering an integrated, triadic view of conscientious purpose-driven branding strategies. Managerially, it provides insights to brand managers wishing to successfully implement these strategies and better understand the role of brands as “purpose-driven entities”.