Gen Z willing to pay premium for transparent brands: study
Some 96% of those surveyed said they specifically sought out authenticity and honesty.
Generation Z in Singapore ‘are willing to pay a premium for brands they deem transparent,’ with a whopping 96% of respondents sharing that sentiment in a survey by consumer communications agency DeVries Global.
This comes as the rampant misinformation has left the digitally native generation hyper-aware and distrustful of online information.
However, the survey also found that brands cannot be “too transparent,” especially if their operations do not live up to their communications.
“People will just think it is an advertising strategy,” a respondent commented when asked if a brand can be too truthful.
DeVries Global Singapore director of innovation & client experience Li Ting Ng added that whilst transparency has become a trend and many brands are jumping on conveying it in their marketing, the Gen Z is probing into the change they are making.
“This is a smart and informed generation that values and demands transparency but understands that businesses aren’t perfect. The challenge then is to figure out what transparency means to your business and how you can commit and communicate it in a way that builds trust and credibility. Not transparency for the sake of it,” Ng said.