How consumer behaviour shapes brand trust and authenticity
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How can modern brands build trust through authenticity, transparency and ethical engagement, as consumer behaviour evolves beyond traditional marketing?
Modern consumers have evolved beyond traditional marketing tactics, becoming increasingly sophisticated in their understanding of how businesses attempt to influence their purchasing decisions. From supermarket layouts to background music, companies have long employed psychological techniques to shape consumer behaviour. However, research suggests that authenticity and transparency may be more effective than subtle manipulation in building lasting customer relationships. The shift reflects a broader change in consumer expectations, with people demanding greater accountability and ethical practices from the brands they support.
Nitika Garg, Professor in the School of Marketing at UNSW Business School, explained how emotions shape consumer behaviour and what this means for brands seeking to build lasting relationships with their customers. Her research examines the complex interplay between specific emotions and purchasing decisions, challenging traditional assumptions about consumer psychology. Successful modern brands must balance their commercial objectives with authentic engagement and transparent practices to earn consumer trust, according to Prof. Garg, who was recently interviewed by Dr Juliet Bourke, Professor of Practice in the School of Management and Governance at UNSW Business School for The Business Of, a podcast from UNSW Business School.
The emotional architecture of consumer decisions
The impact of emotions on purchasing decisions extends far beyond simple positive or negative reactions. Prof. Garg's research revealed that different emotions lead to distinctly different consumer behaviours, with some emotions prompting deeper engagement while others trigger more superficial responses. "What we find is that when people are sad, they process information differently,” she said. “They take more time processing information because sadness is an uncertain emotion... it makes people want to deliberate, it makes people want to process information more deeply. Whereas anger is more of a superficial processing, you know, you just jump in."
She also explained how specific emotions like awe can influence sustainable consumption patterns and overcome price sensitivity barriers. This is particularly relevant for businesses marketing environmentally conscious products that often command premium prices. "Awe actually helps people make that sacrifice," Prof. Garg noted. "Awe actually motivates through a very complex mechanism to, sort of, alleviate people's concern about price and actually go for sustainable products, even if they are expensive."
These insights have implications for how businesses approach customer engagement. Traditional retail environments often employ subtle psychological tactics to influence behaviour, creating carefully orchestrated experiences designed to extend shopping time and increase unplanned purchases. "During their off-peak times, when they want you to spend more time, they'll play slow music, soft music to get you sort of mellow down. Consumers take longer to go through the store and, in the end, make purchases that they didn't intend to," Prof. Garg explained. This manipulation of the shopping environment demonstrates both the power and potential ethical concerns of applying emotional psychology in retail settings.
The rise of brand authenticity and social values
Contemporary consumers demonstrate increasing awareness of corporate practices and social responsibility, with access to unprecedented levels of information about company behaviours and values. This shift has created new challenges and opportunities for businesses seeking to build brand loyalty in an environment where consumers expect authentic engagement rather than superficial marketing.
Prof. Garg emphasised that modern marketing requires a more transparent approach: "That's the old philosophy, right? That's the philosophy we have grown up with, and that a lot of consumers still believe in, which is why the cynicism towards businesses and towards marketing and advertising,” she said. “But I think that need not be the path that we stay on because modern consumer is cynical, modern consumer has a lot of information, and I truly believe that there is an opportunity to get consumers on your side."
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Successful companies have demonstrated that authentic commitment to values can create strong consumer connections. Prof. Garg pointed to examples such as Ben & Jerry's, which established its commitment to diversity and inclusion long before it became a mainstream business concern. "Ben & Jerry's is another company that has always said that we are inclusive, we are diverse, and we stand for the rights of diverse communities,” she said. “And they did this back when this was not fashionable, and they've always supported those communities in their employment strategies, in their promotion strategies and things like that, or the charities that they support."
This evolution in consumer expectations has led to the emergence of what Prof. Garg terms "authentic activism" versus "slacktivism." Companies must demonstrate genuine commitment to their stated values through consistent actions across all aspects of their operations, as consumers increasingly scrutinise the alignment between corporate messaging and behaviour.
Managing brand transgressions and consumer trust
Prof. Garg said there are two types of brand transgressions: performance-based and value-based failures, with each requiring different approaches to recovery and reputation management. Performance-based issues typically involve product or service failures, while value-based transgressions relate to ethical or moral breaches that conflict with stated brand values. "While for a performance-based failure, you might be willing to give them a chance more easily depending on what the reputation of the brand is,” she said. “On the other hand, like these fast fashion example, that took a lot longer for the brands to recover from," Garg noted.
Effective crisis management depends on understanding these different types of transgressions. For example, Nike successfully navigated a performance-based issue with their footwear, while fast fashion companies faced prolonged recovery periods after ethical breaches in their supply chains. Some companies have demonstrated how to handle such crises effectively. "Southwest Airlines, for example. So they are very upfront and very clear in terms of, 'Okay, this is what is included in the standard ticket',” Prof. Garg said. “And back in 2020 when actually they had a crisis where a lot of their flights were cancelled and consumers were stranded and were visibly obviously upset... the CEO actually went on air and sort of apologised, explained why the crisis had happened, and the steps they had taken to sort of alleviate the issue."
The consequences of misalignment can be severe, particularly when attempting to engage with social issues without genuine commitment. The impact of brand transgressions extends beyond immediate consumer reactions to affect broader brand communities and networks. As Prof. Garg explained, consumers often make decisions based not just on their own values but on behalf of their broader social circles. This creates a multiplier effect where brand transgressions can alienate not just directly affected consumers but their entire social networks. Companies must therefore consider the ripple effects of their actions and ensure their practices align with their stated values across all aspects of their operations.
Practical implications for business leaders
For business leaders seeking to build strong consumer relationships, several key considerations emerge from this research. First, understanding the emotional drivers of consumer behaviour provides opportunities for meaningful engagement beyond traditional marketing tactics. For example, specific emotions like awe can be particularly effective in overcoming consumer resistance to premium pricing for sustainable products. However, this knowledge must be applied ethically and transparently, avoiding manipulative practices that may damage long-term consumer trust.
Second, brand communication strategies must resonate with modern consumers. "Apart from emotions you need to communicate. Because no matter what emotions you use, those would be sort of behind the scenes,” said Prof. Garg. “But I think trying to tell consumers, 'This is who we are', or 'This is why we are using awe', for example, right? Like, if I'm using awe in my product advertisement then there has to be maybe some background reason why that emotion is well suited to my product. And if we can strike that balance, I believe that'll be the real sort of jackpot."
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Third, understanding the broader impact of brand decisions has become increasingly crucial. Modern consumers not only make decisions based on their personal values but also consider their social networks and communities. "I might be size six or eight, but I might feel bad about wearing a brand that is so obviously out of sync with the modern sentiment," noted Prof. Garg, who explained how brand decisions can affect not just target consumers but their entire social circles.
The modern marketplace demands a new approach to consumer engagement, one based on authenticity and transparency rather than manipulation. This approach requires businesses to move beyond traditional marketing tactics and embrace genuine dialogue with their consumers. As Prof. Garg concluded, "Nobody is going to say, 'Oh, a business shouldn't be profitable.' Consumers are not stupid. But what they might appreciate is the honesty and transparency in their business practices."