In recent years, there’s been an ongoing shift away from old marketing tricks to a new wave of advertising and consumerism. What worked in the past doesn’t necessarily fly with today’s buyers, who are hyper-vigilant in scouting out authentic brands and products. Social media activists, free articles and accessible infographics are providing a wide range of product information that may have been previously difficult to access. These sources have led to an increased awareness of the negative implications of unethical consumption and over-consumption, from the downsides of fast fashion to the importance of supporting equity-deserving groups. As consumers make more conscious buying decisions than in the past, the question is: Do meaningful purchases lead to happier consumers?

Dr. Catherine Pearl, PhD, an associate professor of social innovation at MRU, says that marketers have become more sensitive to social issues, and those community interests are now being played out in advertising. There has been an increase in “green,” or environmentally friendly products, plus an effort to include more BIPOC (Black, Indigenous, People of Colour) and 2SLGBTQ+ representation. But consumers are quick to hold brands accountable when representation comes too little, too late, or completely misses the mark.

The evolution from the days of Mad Men

“Marketing used to be more detached from the product,” explains Ray DePaul, director of Mount Royal’s Institute for Innovation and Entrepreneurship. “The product was created and then marketing put ‘lipstick on the pig.’”

Campaigns have often put forth wild claims, such as smoking is actually good for you, products are “doctor recommended” and declarations of just about every kind of health benefit imaginable. Making misleading claims in advertising can end in serious consequences, however, such as class-action lawsuits against major brands like Method and Windex when they claimed their products to be non-toxic. In fact, they contained harmful chemicals.

Ray DePaul
Director, Mount Royal’s Institute for Innovation and Entrepreneurship

“This approach is not only illegal as a deceptive marketing practice, but can completely undermine the brand. Brands really need to include these ambitions in the product design, not just the marketing design,” DePaul says.

Values-based marketing is an appeal to customers’ values and ethics, but in order to work, it has to be genuine.

“It’s a shift from the product-based marketing, which focuses on functional aspects,” DePaul says. “If done authentically, there’s evidence that consumers will choose products that align with their values over those that don’t, and will even pay a premium.”

The people are watching

When the Black Lives Matter (BLM) movement started gaining momentum in 2020, Band-Aid launched a multi-racial range of their product. While the change was appreciated, the public was cynical since Band-Aids for different coloured skin tones had been a decades-long request.

“The timing felt more like a marketing ploy,” DePaul says. “Brands need to understand the values they believe in and engage proactively in those values rather than reacting to market pressure.”

Calgary’s own Righteous Gelato also had a misstep in June 2020 when they released a BLM-themed gelato. Even though the business had stated profits would support an appropriate charity, the reaction was swift in claiming that they were capitalizing on the backs of Black people. Righteous quickly pulled its product.

“The first thing brands need to do is engage with the groups they wish to support before embarking on well-meaning, yet tone-deaf campaigns,” DePaul says.

Buying with your conscience

Values-based marketing isn’t just an industry trick designed to sell more products. The parallels between Maslow’s hierarchy of needs and a consumer’s hierarchy of values offer proof of this. The bottom of the consumer’s pyramid consists of the functional benefits of the product, such as cost and time savings, availability, quality and simplification. Up a level are the emotional benefits, such as a reduction in anxiety, improvement in wellness and entertainment. Above that are life-changing values including the provision of hope and a sense of belonging. At the very top is social impact.

“The higher up the consumer’s hierarchy of values you go as a brand, the more valuable you are to the customer,” DePaul says.

Since consumers are looking to make purchases that align with their values, it’s not only about the meaning behind the product itself, but rather about the organization’s values as a whole that will affect a buyer's happiness.

“Most would argue that aligning with brands that are more inclusive with respect to 2SLGBTQ+ rights and BIPOC communities will help build momentum around these important movements,” DePaul says. “By engaging corporations, positive messaging can be amplified and reach new audiences.”

Consumers want to see themselves reflected in ads, social media posts and branding.

“The sense of belonging is a key outcome of aligning with a brand that shares your values. It is affirmation that you are part of a community of like-minded individuals,” DePaul says. “Social connection is a proven ingredient to happiness.”

Buying a pair of shoes simply because they feel good likely won’t result in the same satisfaction as making a selection based on a shared value with the brand, such as choosing Nike sneakers to align with their sponsorship of Colin Kaepernick, the former NFL quarterback who in 2016 started to kneel for the pre-game national anthem in protest against racial injustices. Values-based buying is a simple way to improve relationships with products and feel good about the choices being made.