Why Purpose? A quantitative study on the impact of a communicated corporate purpose on consumers' and potential employees' brand reactions

Sammanfattning: The purposes of organisations is an increasingly discussed topic and during recent years, more and more companies have started to communicate their corporate purpose to consumers. Consumers as well as employees increasingly desire meaning with their consumption and in their careers. Purpose is therefore believed to play an important role in building both consumer and employer brands. The aim of the thesis was to provide understanding for the value of communicating a purpose. More specifically, the thesis aimed to examine if a corporate purpose, communicated to consumers, positively influences consumers' and potential employees' reactions towards the brand. Three quantitative laboratory experiments were conducted at a Swedish business school with a total of 257 respondents. The results indicate that a corporate purpose, communicated to consumers, increases brand attitude and WOM intention as well as the attractiveness of the brand as a potential employer. Furthermore, the purpose was perceived as relevant and was found to signal effort, care and ability. These results indicate that a corporate purpose, communicated to consumers, provides value to the brand.