Socio-Political Issues Influencing Consumer Behavior
Indonesian consumers demonstrate a heightened awareness of socio-political issues, which significantly impact their purchasing decisions.
The Importance of Socio-Political Issues
Socio-political changes are among the five key drivers of transformation that influence business landscapes. Programs and policies addressing these issues often enhance a brand’s value proposition, creating a unique appeal.
Consumer purchasing decisions are no longer driven solely by product quality or price. Instead, they increasingly reflect how well a brand aligns with personal values and principles. Issues such as social equity, environmental sustainability, and ethical practices are now integral to consumer preferences, shaping their choices of products and brands.
What Socio-Political Issues Influence Indonesian Consumer Behavior?
MarkPlus, Inc. conducted a comprehensive survey involving over 2,000 respondents from major cities across Indonesia to explore consumer attention to socio-political issues and their influence on purchasing behavior. Respondents ranked their level of concern on a scale ranging from “Not Concerned at All” to “Highly Concerned.” The findings reveal the socio-political issues most influential in consumer decision-making.
Figure 1 Top 2-Box Scores: Indonesian Consumer Attention to Socio-Political Issues Influencing Purchase Behavior
Based on our survey, more than half of Indonesian consumers demonstrate a significant level of concern regarding socio-political issues, although the priorities vary across different topics. The largest proportion, 93.6%, identifies religious values as the primary consideration influencing purchase decisions. This is particularly evident in consumer behavior, where a high level of attention is given to the halal status of products or services before making a purchase.
Next, employment-related issues, such as job stability and fairness, influence the purchasing behavior of 92.4% of Indonesian consumers. These concerns encompass how brands treat their employees and how they support job stability and fairness, both emotionally and functionally.
In third place, economic issues such as inflation and economic growth impact the purchasing decisions of 89.3% of consumers. These concerns also affect how consumers manage their finances, including saving, investing, and budgeting for living expenses.
Meanwhile, foreign relations are the least influential, with only 36.0% of consumers considering them significant in their purchasing decisions. Indonesia’s relationships with other countries have yet to demonstrate a substantial impact on consumer preferences for products or services.
How Should Brands Respond to Socio-Political Dynamics?
The survey results indicate that brands can significantly influence consumer decisions by addressing socio-political issues. Brands that openly support or oppose specific causes resonate more strongly with consumers who hold firm views on these matters. To remain relevant, brands must go beyond product-focused strategies and integrate values that align with their target audience. Key areas of focus should include religious principles, employment practices, and economic stability. However, a deeper understanding of consumer expectations is crucial to ensure alignment. In navigating this complex landscape, businesses must craft marketing strategies that are both responsive to socio-political trends and reflective of their core values. This approach ensures sustained relevance and appeal in an increasingly conscious marketplace.
