Almost 60% of Brazilians avoid brands involved in scandals, says study

O buying process is triggered by several factors, such as need, desire or even the fact of being a gift for someone dear, among other reasons. However, even with this basis, only a single reason can lead to withdrawal of purchase — whether of a product or service. Brands involved in scandals, such as environmentally related reputational issues, can cause people to abandon their purchases. A study on purchase cancellation, made by Nexus, brought a clearer view on the subject. Check it out!

Reason and frequency of brand boycotts

Recently, the influence of brands and their executives has never been so decisive in consumer behavior. In the last two years, 47% of Brazilians stopped purchasing products or services from companies involved in cases of disrespect or discrimination, such as racism, homophobia, prejudice and mistreatment of employees. This rate rises to 59% when boycotts include issues of compliance (set of practices and procedures that companies must follow to comply with legal standards, regulations, policies and guidelines) or political positions of companies.

This data comes from research Brand Reputation: What Drives Brazilians’ Behavior, conducted by Nexus and presented this Thursday (31) at the REPCOM event, promoted by FSB Holding, the largest reputation management ecosystem in Latin America.

Among the main reasons for the boycott are accusations of corruption and fraud (42%), negative environmental impact (32%), executives with political positions contrary to those of consumers (26%) and the foreign nationality of the company (21%). The survey asked respondents about 10 possible reasons for the boycott, grouping some of them into five macro categories.

Consumers with income above 10 minimum wages are the most likely to boycott, with 82% said they had stopped consuming some product or service in at least one of the situations investigated. Among self-declared LGBTQIAPN+ people, this behavior is also high, with 71% already boycotting brands for one of these reasons.

This means that 6 out of 10 consumers have retaliated against brands, stopping consuming products or services, due to mistakes made by executives or even by the companies themselves. It may have been an unfortunate statement, a misguided post on social media. This shows how much the reputation of brands and companies needs to be taken care of every day, with planning and consistency. Otherwise, the impact on the organization's cash flow can be brutal.

Marcelo Tokarski, CEO of Nexus

The search of Nexus also indicates that many Brazilians have various reasons for boycotting brands or companies. According to the data, 18% of the interviewees are frequent boycotters, having stopped consuming products from a brand in the last two years for at least 8 of the 10 reasons given. Others 18% are classified as moderate boycotters, as they stopped consuming for 4 to 7 reasons. Already 23% are considered occasional boycotters, having avoided brands for 1 to 3 reasons. The 41% remaining stated not to have boycotted no brand or product during this period.

Boycott amount per purchase

Another concern for brands was revealed: in addition to the 6 out of 10 consumers who stopped buying products due to the positioning of companies or their executives, there are also those who go further and practice the same digital cancellation. According to the study, 19% of Brazilians not only stopped consuming products or services, but also they spoke badly of the brands on social networks or websites.

Tokarski highlights that the research shows a increasingly critical consumer and engaged on social media, influencing their purchasing decisions and the reputation of companies. This reinforces the importance of a positive reputation, both online and offline.

Data shows that offline behavior also impacts the online environment: 40% of Brazilians unfollowed brands after negative news, while 24% joined the digital cancellation. Among the actions, 18% wrote negative reviews, 13% shared critical content and 11% posted negative content on your social networks.

The group of 59% of Brazilians who boycotted brands is divided into two parts: 19% are cancelers, as they stopped consuming products and also criticized companies online; the others 40% just stopped buying, without expressing criticism on social media. Furthermore, 6% of consumers were hostile on social media or websites, but without changing their purchasing habits. Finally, the remaining 36% did not participate of boycotts nor made any criticism online.

When we compare online behavior with product boycotts, we realize that 2 in 10 Brazilians are 'cancellers': they stopped buying from a company and also expressed criticism online, whether on social media or review platforms.

Explains Marcelo Tokarski, CEO of Nexus

Influence of the virtual environment

The chances of a brand being boycotted increase significantly when consumers come across criticism about it on social media. According to the survey, 66% of Brazilians claim to be exposed with some frequency to posts or comments encouraging the boycott of certain products or services. Among those who see this type of content with high frequency, 70% have already stopped purchasing a product or service due to at least one of the 10 reasons tested by Nexus.

In contrast, the boycott percentage drops to 50% among those who said they did not see this type of publication. The research also highlighted that younger consumers, especially from generation Z (people born between 1995 and 2010) are the most influenced by online boycott campaigns. The main factors that motivate boycotts include unethical business practices, environmental impact, and the company's treatment of its employees.

This data reinforces the importance of brands carefully monitoring what is said about them in all environments. Reputation, after all, is defined by what is said about you when you are not present. Transparency and ethics are more valued than ever, and brands need to align with their audience’s values ​​if they want to maintain consumer loyalty.

Observes Marcelo Tokarski, CEO of Nexus

About Nexus and REPCOM

O REPCOM is a major reputable event, organized by FSB Holding. Exclusive to invited guests, the event explores reputation in its multiple layers and complexities. On stage, executives, experts, influencers and leading professionals in Communication share their knowledge and discuss the main challenges in building and managing reputation for people, companies, groups and brands in an increasingly complex world. The 2024 edition took place on October 31st, at Grand Hyatt, in Sao Paulo.

A Nexus is a data company that combines advanced technology and human insight to achieve more accurate reputation diagnostics. Nexus was born from the union of Institute for Reputation and Image Research (IPRI) with the data intelligence area of FSB Holding, forming a huge reputation management ecosystem in Latin America. The brand's goal is to find insights that help clients build, manage and preserve their reputation.

And you, what did you think of the data? Did you feel represented too? Tell us about it Comment!

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Text proofread by: Daniel Coutinho in 31 / 10 / 2024