A brand's values are becoming central in consumers' shopping decisions, a new study from Lightspeed Commerce Inc. (NYSE:LSPD) shows.
The survey, which looked at 2,000 shoppers across the U.S. and Canada, found that 92% of people consider themselves "somewhat intentional" with their purchases. Additionally, 45% of shoppers say that they will be considering a brand's values in future purchasing decisions. Lightspeed is calling this shift towards more mindful and value-centric shopping, "valuespending."
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While price (78%) and quality (67%) still remain the most critical things consumers are considering when making a purchase, an increasing number (62%) say that it’s important that the brands they are buying from align with their personal values.
"Consumers today are balancing cost with conscience," Lightspeed's founder and CEO Dax Dasilva said in the report. "It's not always about the lowest price—it's about choosing brands that reflect their values. And when those values align, loyalty can follow more easily. This new era of intentional spending—Valuespending—is reshaping retail and pushing businesses to be more transparent and authentic."
For 32% of the people Lightspeed surveyed, considering a company's values is new. The mindset shift is driven by a number of factors, the study found, including the belief that their spending has a larger impact than ever before, social media influence, and the understanding that we live in a more divided world where every dollar can be politicized.
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So, consumers are putting their personal principles into action. Of the consumers surveyed, 27% said they have made a purchasing decision based on national pride, 18% say they have purchased from a brand because that brand was somehow tied to a charitable cause, 18% have chosen a product because of a brand's sustainability practices, adn 15% have made a purchase because they agree with the CEO's political stances.
Perhaps unsurprisingly, it’s Gen Z that's leading the valuespending charge. A whopping 96% of Gen Z consumers told Lightspeed that they shop intentionally, with 66% saying it's very important to them that purchases align with their personal values.
“[Gen Z] are the trendsetters. … They’ve come into target as the consumer that everybody wants to sell to,” Dasilva told USA Today.
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Being a trendsetter doesn't come without its own pressures, however. Some 32% of Gen Z shoppers told Lightspeed that they worry about being judged for purchasing from the wrong brands.
“There’s that element of peer pressure that we make statements with the things we purchase or the things we wear,” Dasilva told USA Today. Valuespending may be changing the way we shop, but it’s not necessarily simplifying it.
"These insights show us that consumer expectations are evolving," Dasilva said in the Lightspeed report. "From sustainability to social impact, the brands that listen, adapt, and ‘walk the talk' can thrive in this age of Valuespending."
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