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Weber Shandwick Study Finds "Good for Me" Outweighs "Good for All" as a Driver of Company Reputation

Mittwoch, 15.02.2017 17:00 von

PR Newswire

NEW YORK, Feb. 15, 2017 /PRNewswire/ -- One of the leading drivers of corporate reputation among consumers is how good or healthy a company's products/services are for them, and how happy they make them feel, according to a new survey released today by global communications and engagement firm Weber Shandwick.

The degree to which products and services make individuals feel good or healthy surpasses their interest in specific corporate responsibility initiatives, sometimes by wide margins. "Our study highlights a heightened demand for more personalized corporate narratives," according to Andy Polansky, Weber Shandwick CEO. "Such narratives today are most relevant when they relate directly to individual consumers' well-being in addition to a company's commitment to tackling broad societal issues. Communications, marketing and R&D need to be more integrated than ever to achieve this new reputation paradigm."

The Weber Shandwick report, "The Company behind the Brand II: In Goodness We Trust" was conducted with KRC Research among consumers and senior executives in 21 global markets. It follows an earlier report, "The Company behind the Brand: In Reputation We Trust," that identified the interdependence of corporate brand and product brand.

With 47 percent of consumers frequently discussing how healthy or good specific company products or services are, and 46 percent increasingly buying from companies that make them feel good, Weber Shandwick concludes that the personal, individual benefits of a product are a prime consideration to drive purchasing decisions. This overshadows the impact that companies have on a number of social impact factors among consumers (see chart below).

Corporate Issues on the Minds of Global Consumers



"Good For Me"

"Good for All"

Frequent/regular topics
of conversation

How healthy or good company
products/services are (47%)

What companies do to protect/positively
impact the environment (34%)

How you feel about
products/services you buy (47%)

The impact companies have on
important societal issues (34%)

How you feel about companies as
a whole (41%)

How companies treat employees (33%)

What companies do to support good
causes/charities (31%)

What companies do to contribute to
communities where they operate (28%)

Whether companies hire people from
diverse backgrounds (26%)

Increasingly doing more
now than in the past

Buying from companies or brands
that make you feel happy and good (46%)

Buying from companies that have a social
purpose or strive to make a positive
contribution to the world (30%)

Buying from companies that care about
your health and well-being (43%)

 

Millennial consumers (those born between 1981 and 1997) respond in larger numbers to both "good for me" and "good for all" issues, but like the total sample, they tip the scale in favor of "good for me."

Even executives recognize that providing and communicating "good for me" is an emerging hallmark of a strong company reputation. Senior executives at companies with highly esteemed reputations are much more likely than those at less reputable organizations to say their companies promote how healthy or good their products and/or services are (70 percent vs. 55 percent, respectively).

While there is a difference between companies on the basis of reputation when it comes to goodness, there is no significant difference between companies that market to consumers directly (B2Cs) and those that sell to other companies (B2Bs) – 64 percent vs. 61 percent, respectively.

Company Behavior Matters
Consumers are closely watching companies' actions. They form opinions about companies through not just what customers say about them (88 percent), but also how companies react in times of crisis (85 percent). The finding that company responsiveness is so important is a critical shift in reputation-building that should be addressed by all companies, large or small.

With more than one-third of global consumers (36 percent) saying that they have discussions with others or share information about corporate scandals or wrongdoings, how a company responds to an issue or crisis today clearly impacts its integrity, credibility and trustworthiness. In fact, responsiveness to issues and crises is more important in driving perceptions of a company than what the media says (76 percent), what employees say (76 percent) and what the company says about itself – whether that is on its website (68 percent), what its leaders say (61 percent) or what exists in its advertising (61 percent).

"Proactive reputation risk management has never been more critical than it is today. Preparedness is a must, with a plan that ensures agility in mitigating and addressing issues and crises," said Micho Spring, Weber Shandwick's global corporate practice chair. "Weber Shandwick's newest study on corporate reputation shows that the drivers of reputation are tilting, and that those companies that recognize and respond to this new hierarchy will win consumers' hearts and minds."                    

The Challenge of Globalizing Reputation
The majority of executives in our study (69 percent) find it challenging to communicate about their own company's reputation across different countries, languages and cultures. Executives who find it least challenging to communicate their own company's reputation across the globe are most likely to work for companies that focus equally on parent and product reputation. This shows that, especially for global companies, parent and product brand reputations are interdependent.

Reputation Begins at Home
The reputation of the parent company is often the make-or-break factor in purchase decisions. Nearly four in 10 consumers (38 percent) say that the reputation of a parent company has altered their preference for which products and/or services they buy.

On the executive front, nearly nine in 10 global executives (86 percent) report that a strong corporate, or parent, brand is just as important as – or even more important than – strong product brands. A full 83 percent believe that product brands need to be transparent about their lineage, and 73 percent believe that consumers care about parent companies. These beliefs are common to B2C executives and B2B executives alike. Executives recognize that consumers today are not just purchasing products or services for their functionality, but are also shopping by the reputation of the company.

Implications for Companies
The Company behind the Brand II: In Goodness We Trust shows a world in the midst of a consumer revolution. Consumers are empowered by their influence on companies and know how to operationalize their empowerment through their words and deeds. Today's successful communicators and marketers must be aware that the corporate imperative based on this dynamic is two-fold:

  1. At the product level, what products and services need to deliver is shifting from functional utility and basic quality to fulfillment of customer well-being - whether that is in the form of health, safety or simply being "good for you." Marketers should be aware of the rise of personal and purpose communications and the emerging trend that their companies' reputations are now influenced by the wellness and peace of mind that their goods deliver.
  2. At the corporate level, responsiveness is now a reputational mandate. As boards are hyper-focused on reputation risk, no corporate brand can afford to be without a crisis response plan or insights into predicting troubles ahead. On a more micro-level, brands need to respond to and engage with their stakeholders on a continual and agile basis.

Companies that do not yet have their fingers on the pulse of these changing dynamics and are appropriately tapping into consumer priorities and addressing risk issues need to rapidly catch up and seize these opportunities in order to stay competitive and outpace their peers. "The research has identified the importance for companies to integrate overall well-being and 'good-for-me' into their marketing and communications. Increasingly, consumers are asking themselves 'what's in this for me?'" said Weber Shandwick's chief reputation strategist Leslie Gaines-Ross. "Companies that care about their corporate reputation are working overtime to answer that very question."

Click here to view the full report and infographic.

About the Research
The Company behind the Brand II: In Goodness We Trust was commissioned by Weber Shandwick and conducted by KRC Research in June 2016. An online survey was administered to 2,100 consumers and 1,050 senior executives across 21 markets worldwide. The consumers sampled represent the adult general population of their respective countries. Executives are in mid- to high-level occupations at companies with at least $250 million in annual revenue, with comparable levels in other developed countries and lower thresholds in emerging markets. These executives represent a variety of industries.

About Weber Shandwick
Weber Shandwick is a leading global communications and engagement firm in 79 cities across 34 countries, with a network extending to 127 cities in 81 countries. The firm's diverse team of strategists, analysts, producers, designers, developers and campaign activators has won the most prestigious awards in the world for innovative, creative approaches and impactful work. Weber Shandwick was the only public relations agency included on the Ad Age Agency A-list in 2014 and 2015 and the only PR firm designated an A-List Agency Standout in 2017. Weber Shandwick was honored as PRWeek's Global Agency of the Year in 2015 and 2016, The Holmes Report's Global Agency of the Year in 2010, 2012, 2014 and 2015 and The Holmes Report's Global Digital Agency of the Year in 2016. The firm deploys deep expertise across sectors and specialty areas, including consumer marketing, corporate reputation, healthcare, technology, public affairs, financial services, corporate social responsibility, financial communications and crisis management, using proprietary social, digital and analytics methodologies. Weber Shandwick is part of the Interpublic Group (NYSE: IPG). For more information, visit http://www.webershandwick.com.

About KRC Research
KRC Research is a global full-service nonpartisan opinion research and strategy firm. A unit of the Interpublic Group of Companies (NYSE: IPG), KRC Research offers the quality and custom service of a small firm with the reach of a global organization. For over 30 years, KRC Research has worked on behalf of corporations, governments, not-for-profits and the communications firms that represent them. Staffed with multidisciplinary research professionals, KRC combines sophisticated research tools with real-world communications experience. For more information, visit www.krcresearch.com

Contact:

Kim Dixon

Company:

Weber Shandwick

Phone:

212.546.7876

Email:

kdixon@webershandwick.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/weber-shandwick-study-finds-good-for-me-outweighs-good-for-all-as-a-driver-of-company-reputation-300407973.html

SOURCE Weber Shandwick