The Impact of Active vs. Neutral Brand Stances on Gen Z’s Perceptions, Engagement and Loyalty

Abstract

In an era characterised by widespread internet access and increased social awareness, the relationship between brands and sociopolitical issues has become a significant topic discussion and controversy. This study examines the effects of brand activism versus brand neutrality on brand reputation, customer engagement, and brand loyalty within the context of the Israel-Palestine conflict, particularly focusing on the Generation Z demographic. The following research question is developed and answered in the study: What are the contrasting effects on brand reputation, customer engagement and brand loyalty when brands take sides on political conflicts versus adopting a neutral stance? How do these different approaches impact the perceptions Gen Z and contribute to shaping the overall brand image?

Grounded in existing literature on political brand communication, corporate social responsibility (CSR), and political consumerism, this study highlights the significant influence of CSR and brand political communication on brand reputation and customer engagement. It differentiates between genuine and performative brand activism, underscoring the importance of authentically integrating social values into brand operations over superficial displays of support. The role of social media in shaping Gen Z perceptions and behaviours is also emphasized, with ethical alignment and moral integrity being significant in their purchasing decisions.

Employing an exploratory research design, this study utilizes in-depth interviews with 13 Gen Z participants and 2 older participants to investigate the effects of brand stances on political issues. The findings reveal that Gen Z respondents prefer brands that genuinely integrate social responsibility into their operations over those that rely solely on corporate philanthropy. Genuine activism results in higher brand loyalty compared to performative activism or neutrality. While neutrality helps brands avoid direct controversy, it often leads to perceptions of moral neglect, negatively affecting brand reputation. Furthermore, social media discourse significantly influences Gen Z's engagement in buycotts and boycotts. The study also strongly supports that brands publicly expressing support for Palestine can enhance loyalty among Middle Eastern consumers.