(BPRW) ‘By Black’ Seal Shows Americans Are Willing to Pay More to Eliminate the Racial Wealth Gap

National Study Shows Half of Americans Will Pay Premium Price to Help Close Racial Wealth Gap

(Black PR Wire) New York, NY – The “Certified Prosperity for the Next Generation, By Black” seal is proving to be a powerful market differentiator, according to research with the American public released today by the Fund for Social Equity showing that 50% of respondents are positive to the concept of a seal standing for family prosperity for Black-owned, managed and operated companies.

The national study, conducted by the research and marketing nonprofit Fund for Social Equity, reveals particularly strong consumer response in major metropolitan markets. More than half of consumers in Dallas, Houston, Philadelphia, Oakland, and Washington, D.C. reported increased likelihood to purchase from businesses carrying the certification seal, with the strongest interest in health, beauty, and apparel categories.

The  recent research validates the seal’s effectiveness across multiple dimensions:

• Purchase Intent: 50% of Americans expressed willingness to pay premium prices for products from certified businesses, including 30% who are willing to pay 6% more or greater for core categories.
• Increased purchase interest was strongest in 25-44 year-olds, Democrats and Blacks.
• However, interest was normative among almost all other demographic groups including Republicans and other groups.
• Only 15% of those tested were negative to the concept, and this finding was concentrated mostly among independents, 55+ year olds, widowed and divorced. This finding was consistent with the previous two waves.
• Market Recognition: The certification mark achieved significant recognition as a trusted identifier of Black-owned and operated businesses.
• Category Impact: Health, beauty and apparel emerged as leading categories where consumers actively look for the certification seal.

The research serves as the driving mission for the Fund for Social Equity, a nonprofit that has developed and is testing various seals to identify businesses owned and operated by Black Americans as a way to reduce the pervasive wealth disparity between Black and white Americans.

• The racial wealth gap between Black and white households continues to widen in the U.S. according to the latest research from the Board of Governors of the Federal Reserve and now stands at $307,000 for Black families and $1.3 million for whites, respectively.

“Our ongoing research, now in its third wave over three years, demonstrates that Americans are willing to purchase products from Black-owned companies with a seal affirming their authenticity – and willing to pay a premium.  The 85% of Americans who are either positive or neutral to the concept indicates a vast majority of Americans recognize the market opportunity for this economic sector,” said Mark Koide, co-founder of the Fund for Social Equity (FSE) and a life-long marketeer. “This sends such a strong, positive message for Black-owned businesses who can differentiate themselves in the marketplace both in-store and via e-commerce.”

The study included six logos which feature the US Black Chambers’ ByBlack logo. 

•  51% of the test sample rated one of the six tested logos for increased purchase interest.
• Most product categories will benefit from the seal with most categories gaining 30% increase in likely to purchase interest.
• One logo scored significantly better than the other in purchase interest.

Commenting on the findings, April Jeffries, Global President of Ethnography and Immersion at Ipsos, said, “After three waves of this research over three very different years in the U.S. we find consistent support of the intent among Americans to want to support Black-owned businesses when that concept is linked to reducing the racial wealth gap.”

Ron Busby Jr., head of product at ByBlack, which is an initiative associated with US Black Chambers, stated, “Buying Black isn’t a fad—it’s a movement. After three years of research, our data shows consumers remain committed to supporting Black-owned businesses. At ByBlack, we’re dedicated to creating and providing the vehicles and access that empower consumers to buy Black and uplift Black business owners. Whether you lead with your identity, or it’s expected of you, the growing size and relevance of the Black community speaks for itself. Buying Black transcends categories, proving the undeniable power and influence of supporting Black-owned brands.” For more information about ByBlack and how to register your Black-owned business, visit: https://byblack.us.

FSE is led by an inclusive Board of Advisors which is comprised largely of marketing and nonprofit leaders who are committed to ending the racial wealth gap. For their bios and further information, please visit https://fundforsocialequity.org.

As part of this year’s nationally representative study of the general U.S. population, participants were asked to react to six logos denoting product, services and companies that are Black owned, managed and operated. Additionally, 12 product categories were tested to determine the most suitable products. While health and beauty and clothing and apparel rose to the top, “fresh products scored well, with baby products and pet care on the lower end as these products are used by a smaller proportion of the population.

Regionally, Dallas, Houston, Philadelphia, Atlanta, Oakland and Washington, D.C.  were among the top markets in which there was the greatest demonstrated appeal. And among demographics, Millennials, Blacks and Democrats demonstrated the strongest interest. To read and download the research summary, please visit: https://fundforsocialequity.org/#research.  To donate to the FSE, please visit here.