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Buying Moment CoverageNovember 25, 2025

No Evidence Brand Purpose Causes Growth: The ESG Fallacy

Saving the whales is noble. But the data shows it does not sell more widgets. Consumers buy based on price, quality, and availability.

In 60 Seconds

Purpose vs Profit
  • The Claim: 'Gen Z only buys from brands that align with their values.'
  • The Data: When standing in the aisle, Gen Z buys the cheapest/best tasting option, just like everyone else.
  • The Exception: Purpose serves as a 'Tie-Breaker' only when Price and Quality are identical. It is rarely the Primary Driver.
  • The Risk: Alienating 50% of your market to appeal to the 'Values' of the other 50% often results in a net loss (The Bud Light Effect).
  • The Advice: Be a good corporate citizen because it's the right thing to do. But don't expect it to replace your marketing budget.

In the boardroom, everyone talks about "Brand Purpose." "We aren't just selling HVAC. We are cooling the planet."

It feels good. It wins awards. It doesn't sell HVAC.

The Hierarchy of Needs

Consumers are selfish (rationally).

  1. Function: Does it work?
  2. Price: Can I afford it?
  3. Convenience: Can I get it now?
  4. ...gap...
  5. Purpose: Do they support my charity?

If you fail 1-3, #5 doesn't matter. If you win 1-3, #5 is just icing.

Ethical Consumption is a Luxury

When inflation is high (2025/2026), "Values" take a backseat to "Value." Most consumers say they will pay more for sustainable products in surveys. In the grocery store checkout line, they pick the cheaper one. This is the Say-Do Gap.

Focus on "Category Entry Points"

Instead of linking your brand to "World Peace," link it to "Summer Heatwave." That is a consumption trigger.

  • Valid Purpose: "We donate 1% to local trade schools." (Relevant, localized).
  • Invalid Purpose: "We are fighting global injustice." (Vague, political, risky).

[!TIP] Be Boringly Good The best thing a business can do for society is:

  1. Employ people.
  2. Serve customers well.
  3. Pay taxes. You don't need to save the world. You just need to fix the roof.

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Max Digital Edge

Demand Capture Specialist

Specializing in high-intent demand capture infrastructure and local visibility systems.

Last updated: November 25, 2025