In 2000, political scientist Robert Putnam lamented the growing social isolation and loss of social capital in American society. In his book Bowling Alone: The Collapse and Revival of American Community, Putman documented the declining participation in civic, religious, sports, volunteer, and fraternal organizations, among others. Associated with this decline is a loss of the social relationships that create a sense of shared values and common purpose.
He noted that more people than ever were bowling, even as membership in bowling leagues declined; thus, the name of the book, Bowling Alone. While the book has received some criticism, it documents a trend that continues today: people spend less time in face-to-face social interaction. This decades-long trend has continued regardless of the political party in power or the health of the general economy. Indeed, by almost every metric, the average American’s quality of life and standard of living is at an all-time high.
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The advent of social media, which was assumed to increase social interaction, has, in fact, increased the sense of loneliness and social isolation among many and often contributes to a diminished sense of well-being and increases in anxiety and uncertainty about the future. The COVID pandemic further diminished the frequency of face-to-face social interaction. A media that finds greater value in reporting bad news rather than good news and conflict rather than cooperation reinforces the general sense of anxiety, uncertainty, and social isolation.
The Negative Forces Of Uncertainty And Anxiety
Aside from suggesting a greater need for therapy in the general population, why should this trend matter to marketers, brand builders, and businesses? The answer lies in the link between how people feel and what and how they spend their time and money. Feelings of uncertainty and anxiety reduce discretionary spending and change patterns of expenditures for necessities.
For example, although food is a necessity of life, fear and uncertainty about the future, as is common in economic downturns, or the fear of such downturns, changes food consumption. During a recession, consumers who frequent more expensive full-service restaurants often “trade down” to less expensive family and casual dining and switch to quick-service restaurants. Such switching behavior continues throughout the industry as consumers who once frequented quick-serve restaurants decide to consume more meals in-home. When they shop for ingredients for home preparation of meals, they tend to select less expensive options. This same pattern of response to fear and anxiety is present in every market and industry. Uncertainty is not good for business.
The Positive Force Of Brands
In times of uncertainty, consumers look for stability, constancy, and trusted relationships that serve as anchors in an otherwise turbulent world with an unknown future. Such anchors are often found in social relationships, but these are no longer as prevalent or as strong as in the past. Another set of anchors consists of familiar, trusted, and reliable products: brands. Successful brands always have value, but their value may be greatest when they represent a source of assurance in an otherwise worrisome world. As Putnam documented, consumers may look to brands as a substitute for or complement to diminished interpersonal support.
Creating and maintaining a brand’s role as an anchor in the customers’ world demands discipline and consistency – consistency in delivering the benefit(s) customers have come to associate with it and consistency in its positive regard for customers. Bud Light offers an example of what not to do. In contrast, Apple has consistently celebrated the empowerment of its customers through technological innovation. It also does not apologize for its price; it signals quality and distinction. Similarly, McDonald’s has remained committed to consistency in food quality and efficient service. Pricing by McDonalds is rarely in the form of price reduction. Instead, when it does discount it offers “value” meals that reinforce customer loyalty and signals that the company is aware of and responsive to the customers’ world.
Successful brands deliver on their promise and what the customer expects and do so in ways that communicate that they understand and care about their customers. They recognize that branding is relationship building, establishing trust, and being a reliable port in the storm. They also understand that the customer will ultimately define the nature of the relationship and even whether one exists. Ultimately, branding is not something a firm does; it is something it does with its customers.
Contributed to Branding Strategy Insider by Dr. David Stewart, Emeritus Professor of Marketing and Business Law, Loyola Marymount University, Author, Financial Dimensions Of Marketing Decisions.
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