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GLOBAL CONSUMER SURVEY 2007 - OVERALL RESULTS -

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Objectives Can consumers and brands work together to take action & effect positive change for mutual benefit? The good purpose Consumer Study was in order to better understand Theundertaken good purpose Consumer Study was consumersinunderstanding and involvement undertaken order to better with socialsocial issues,issues, brands and “good causes” understand brands and consumer involvement related to “good Areas of investigation: causes” Awareness Attitudes Actions Advocacy 2

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Methodology and Sample • • • •

StrategyOne conducted 5609 interviews across nine countries between September – October 2007. The study was an online survey of consumers, nationally representative of each of the country populations. For India and China survey was conducted as face to face and CATI respectively. Sample sizes per country are: US = 1004, China = 1000, UK = 582, Germany = 510, Brazil =505, Italy = 501, Japan = 503, India = 500, Canada = 505. The margin of error is +/- 3.1% for the U.S. sample and +/- 4.38% for the UK, German, Italian, Brazilian, Japanese, Indian, Chinese and Canadian samples. +/- 2.53% for the European (UK/Italy/ Germany) sample, +/- 3.1% for the North American (US and Canada) sample, +/- 2.53 for the Asian (Japan, China and India) sample and +/- 4.38 for the Latin American (Brazil) sample.

Canada 505

U S 1004

U K 582 Germany 510

China 1000

Italy 501 Japan 503 India 500 Brazil 505

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WHAT HAVE WE LEARNT? - Summary of key findings -

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What Have We Learnt? • Consumers are more involved than ever in social action! • Consumers will pay more for and evangelize good cause brands • Environmental marketing is the new bottom line; other social issues such as health equality are tracking very strongly with consumers as well • Brands need to communicate their social purpose credentials more effectively • Word-of-mouth is the most credible communication on causes • Brands have the opportunity to involve consumers on a deeper level in social purpose by ‘making it easier to do good’

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1. Consumers are more involved than ever in social purpose Consumers want to make a difference & prefer brands that do! •

Nearly 9 in 10 consumers (88%) surveyed feel it is their duty to contribute to a better society and environment

•

83% say they can personally make a difference by supporting good causes

•

78% of consumers like to buy from brands that make a donation to worthy causes

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Consumers and their families are becoming more active in good causes • 56% of consumers are now involved in supporting a good cause. • On average consumers are involved, either directly or through a member of their family, in more than two social or environmental causes…..in Brazil, it’s four

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2 . Consumers will pay more for and evangelize good cause brands •

Make money and do good! 57% of consumers have no problem with brands that support good causes and make money, too

70% say they would be prepared to pay more for a brand that supports a good cause they believe in

When choosing between two brands of same quality and price, a social purpose is what would most affect consumer decision (41%), ahead of design & innovation (32%) and brand loyalty (26%)

Over half of consumers (55%) would help a brand promote its products if there was a good cause behind it

56% are more likely to recommend a brand that supports a good cause than one that does not

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3. Consumers moving to citizenship? …as doing good makes people content •

“Helping others and contributing to my community” was second (44%) only in contentment to “spending time with friends and family” (75%)

Only 22% of consumers globally feel most content when shopping

Wide array of causes motivate consumers…

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4. Environmental marketing is the new bottom line •

More than seven in 10 (73%) would be prepared to pay more for environmentally friendly products.

•

Nearly nine in ten consumers (89%) say that products should use recycled packaging.

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5. Brands need to better communicate their good purpose • Only 4 out 10 consumers are aware of a brand that actively supports a good cause. • Spontaneous awareness of brands associated with good causes is very low. • Unprompted across 9 countries Coke (10%), Avon, McDonalds Nike, Natura, Banks and Krombacher beer (4% respectively) are the brands most commonly associated with a good cause. • From a prompted list Coke (27%), Avon (18%), Dove (16%), Nike (16%), and The Body Shop (15%) are the brands most commonly associated with a good cause.

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6. Consumers’ expect more from companies on good causes •

Two thirds (67%) of consumers would rather see brands spend more money on good causes and feel that too much money is spent on advertising and marketing.

74% feel that companies should do more to meet people’s needs without harming future generations.

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7. Brands have the opportunity to involve consumers more deeply in social good by making it easier for them •

Brands need to help consumers find easy solutions for getting more involved in their cause as time (for 52% of consumers) and money (for 42%) are considered to be the main barriers

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Good Causes - How to engage a brand with consumers

36%

56% 58% 67% 83%

Loyalty

Action Involvement Awareness / informed Care

Loyalty: Would buy the brand that support good causes regardless of the good cause

Action: promote or recommend a brand if there were a good cause behind it

Support of any good causes

Informed about good causes

Care about any good causes

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Good Purpose Consumer Survey In Depth Findings

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PART ONE

Consumer Behaviour /Attitudes / Knowledge on Good Causes

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Spending time with friends and family and ‘Doing Good’ makes us feel most content in all corners of the globe 58%

Spending time with family or friends

TOTAL

75%

64%

70%

78% 80% 80% 82%

83%

85%

44%

27%

Helping others and contributing to my community

44% 43%

31% 22% 25%

Shopping

30%

18%

10%

16%

22%

19%

23%

12% 11%

8%

7%

12%

53% 49% 50%

US Brazil UK Germany

47%

40%

! Personal satisfaction achieved through shopping does not make us feel as content as doing good and helping others.

! Contentment from helping

11%

Helping the world

49%

China Japan India Italy Canada

16%

29%

others highest in India, least in Japan

14%

10%

Q1. Thinking first about the things that make you feel the most content. Would you say? I feel content when I am...(Base: All Respondents n=5609)

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What groups / organisations represent “Good Causes”? - # One organisation per country -

Red Cross = 29%

United Way = 20% Oxfam = 30%

Red Cross = 40% Red Cross = 35%

Red Cross = 25%

Unicef = 27%

Globally the 2 most recognised “Good Causes” are…

Unicef 18%

#1 = Red Cross, 23% #2 = UNICEF, 13%

Greenpeace = 31%

Q2. Now we would like your view on good causes. People think about good causes in different ways. When you think of a group organisation that represents a ‘good cause’, which THREE organizations first come to mind? (Base: All Respondents n=5609)

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Consumers care about the world they live in – they are willing to change their consumption habits to make a positive difference - Total % Agreeing with each Statement -

Everyone should be able to express their opinion on issues without fear

91%

or censorship Products should use recycled packaging whenever possible

89%

It is my duty to contribute to a better society and environment

88%

Tend to keep buying the same brand for a while, if I like it

88%

Worth paying a bit more for goods that are good quality

87%

Willing to change my own consumption habits if it can help make

86%

tomorrow's world a better place to live I can personally make a difference by supporting a good cause

83%

It's important to buy from companies that I know are socially responsibly

83%

Like to buy from brands that make a donation to worthy cause

78%

Find it helpful to know a product has been recommended by an expert I

78%

trust M ore likely to buy products if they also benefit my local community

76%

When shopping for the household I watch every cent

75%

I would never buy something that has been made by child labour

74%

Prepared to pay more for goods that are environmentally friendly

73%

Personally involved in helping the less fortunate/disadvantaged

67%

I would never buy something that has been tested on animals

58%

I like to buy new brands as soon as they come out to see what they're

44%

like I buy many things that I don't really need There is too much fuss about the environment

42% 38%

Q3. Here are some things that people have said about their attitudes, buying habits or good causes. For each one I would like you to tell me how much, you agree or disagree with the statement ...(Base: All Respondents n=5609)

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Consumers across the world care the most about the environment Across the word the countries showing the most concern are‌

Protecting the environment

92%

Enabling everyone to live a healthly life

90%

Equal opportunities to education

89%

Reducing poverty

89%

Fighting global HIV/AIDS

83%

Building understanding and respect for other cultures

82%

Helping to raise people's self esteem

Supporting human and civic rights

Supporting the creative arts

77%

71%

69%

98% in Brazil 96% in Brazil 96% in Brazil 95% in Brazil and Italy 95% in Italy 90% in Germany 88% in Brazil 97% in Italy 87% in Brazil

Q5. How much do you personally care about the following good causes?.(Base: All Respondents n=5609)

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PART TWO

Getting Involved in Good Causes

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Half of consumers (or a close member of their family) are involved in supporting a good cause TOTAL

56%

Canada

70%

Brazil

69%

Germany

64%

China

61%

US

57%

UK

52%

India

51%

Italy Japan

! Consumers in Canada and Brazil are significantly more likely to actively support a good cause (70% and 69% respectively). ! Japanese consumers are significantly less likely (22%)

50% 22%

Q6. Are you or a close member of your family involved in supporting any good cause? (Base: All Respondents n=5609)

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Environmental and reducing poverty causes get most of our support Across the word the countries showing the most support are‌

Protecting the environment

48%

Reducing poverty

43%

Enabling everyone to live a healthy life

34%

Equal opportunity to education

31%

Supporting human and civil rights

Helping to raise people's self-esteem

Building understanding and respect for other cultures

24%

21%

18%

67% in Brazil 67% in China 48% in Brazil 62% in India 44% in Italy 48% in Brazil 33% in Brazil

Supporting the creative arts (music, art, literature etc)

17%

35% in Brazil

Fighting global HIV/ AIDS

17%

39% in India

Q7. What good cause(s) do you support the most? (Base: All those who support a cause n=3127)

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Supporting good causes still perceived as a charity donation ! Across the Word the Money Donation is the main way people provide support Made a donation money

70%

Money donation = 82%

Made a donation other e.g. clothes

58%

Money donation = 82%

Worked for free/volunteered

39%

Money donation = 75%

Bought a product or service that supports a good cause

36%

Money donation = 71%

Taken part in a sponsored event

31%

Money donation = 69%

Being active in my local community

24%

Teach others

24%

Money donation = 64%

Money donation = 55%

Being an active member of a non-profit organisation

23%

Money donation = 52%

Protested on behalf of a good cause

15%

Money donation = 51% Q8. Of the cause(s) you said you support the most, how do you support it/ them? (Base: All those who support a good cause n=3127)

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Four out of ten consumers feel more involved in good causes now compared to two years ago - % Feeling More Involved in Good causes TOTAL

37%

Brazil

63%

India

42%

US

40%

Italy

38%

Canada

36%

UK

33%

China

32%

Germany Japan

28% 23%

Q9. Do you feel you are more or less involved in good causes now than you were two years ago?? (Base: All those who support a good cause n=5609)

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Time and money are the key barriers to getting more involved in good causes - Top Five Barriers 52%

34%

45%

34%

Not enough time

40%

64% 61% 47%

42%

48%

Not enough money

43%

21%

59% 58%

39%

19%

8%

Not enough information

79%

40% 40%

27%

7%

68%

11% 13%

TOTAL US UK Germany Italy China Japan India Canada Brazil

36%

8%

41%

5%

13% 19% 19%

20%

14% 10% 17% 8% 19%

I'm not motivated

25%

32%

12% 12%

5%

It's too much effort

11% 9%

5%

24% 16%

22%

3%

Q10. What are some reasons why you are less involved with good causes? (Base: All those feel less involved in good causes n=5609)

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What leaders inspire us to get involved in good causes? - # One leader per country (prompted)-

12%

29%

39% 27%

24%

Globally the top 3 celebrities most likely to inspire involvement in a “good cause” are… #1 = Dalai Lama, 21%

23%

45%

49%

47%

#2 =Nelson Mandela, 18% #3 =Bill and Melinda Gates, 16% #3 =The Pope, 16% Q11. Which of the following leaders or celebrities might inspire you to get involved with good causes? (Base: All respondents n=5609)

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Traditional information sources and word of mouth still dominate how we obtain information on good causes, although the Internet is becoming an increasingly powerful tool 52%

Newspaper & magazines

48%

TV

46%

Friends & family 36%

Search engines Non government organisations e.g. WWF, Red Cross, WHO Anyone who is involved in supporting a good cause

32% 31% 27%

Local community organisations

23%

Radio

21%

Companies'website Weblogs or Blogs

16%

Work colleagues

16%

Social networking sites (MySpace, Facebook or other online communities) Local council Free content encyclopaedia such as Wikipedia Academic sources

15%

! Consumers in Brazil (76%), the UK (75%) and Italy (75%) are most likely to use online information sources !Those in Japan are most likely to rely upon weblogs/blogs (31%)

14% 12% 10%

Q12. If you were looking for information about supporting a good cause in order to get more involved, which sources would you turn to? (Base: All respondents n=5609)

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Consumers are actively sharing information on good causes on a regular basis Every day

Proportion of consumers in each country sharing information at least once a week

8%

69%

NET At least once a week

32%

47% Less than every day but at least once a week

24%

47%

Less than once a week but at least once a month

23%

38%

Less than once a month but at least once a year

Less than once year

41%

22%

26% 8%

24% 11%

Never

9%

6% Q13. How OFTEN do you share information or opinions with others about good causes? (Base: All respondents n=5609)

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Consumers want return on involvement. They need to know the good cause is successful in bringing about change There were proof of it's success/a positive effect on the cause it supports

38%

I liked it a great deal

29%

My friends and family did

27%

It was a local cause and helps the community I live in

26%

49% in the UK 49% in the Germany 76% in India 39% in Canada

I had access to information about what is being done to support the cause

25%

44% in Brazil

It was relevant to me or my family and/or friends

25%

39% in Canada

It raised awareness of the good cause

21%

I could see that the product or service was in some way connected to the good cause e.g. A drinks manufacturer building community wells in poorer

20%

I already personally supported it

It was relevant to my work

15%

11%

40% in India 37% in Brazil 27% in India 26% in India

Q15. Which THREE of the following, if any, would persuade you do more to support a good cause? (Base: All respondents n=5609)

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Sport and Entertainment sectors are perceived as doing the most to support good causes. Not surprisingly, Tobacco and Fuel are seen as the least supportive sectors

Q16. How much do you feel the following sectors are supporting good causes? (Base: All respondents n=5609)

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PART THREE

How do Consumers feel about Brands and Good Causes?

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Consumers are interested in brands and their cause related initiatives, therefore brands can benefit from consumers return on involvement = mutual benefit for consumer and brand

Q17. To what extent do you agree or disagree with the following statements? (Base: All respondents n=5609)

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Consumers and companies need to work together to make causes successful Reducing energy use

7%

Raise funds or donate goods for charity

7%

Recycling

9%

Do charity walks or events Search for solutions on life threatening diseases

68%

21%

63%

14%

13%

63%

21%

5%

Consumers should act for themselves

69%

9%

17%

Reading to schildren and after school programmes

70%

15%

19%

Speaking up for equal rights

75%

19%

13%

Helping the elderly Serving food for the homeless or disadvantaged

15%

60%

42% 34%

49% 12%

Companies should act for themselves

48% Consumers and companies are best to do things together

Q18. To what extent do you agree or disagree with the following statements? (Base: All respondents n=5609)

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Most consumers think brands are actively supporting good causes but there is still room for improvement - % thinking brands actively support good causes TOTAL

54%

China

72%

US

62%

Canada

59%

UK

48%

Japan

46%

Germany

45%

Brazil

45%

Italy

12%

Q19. How much, if at all, do you think product brands actively support good causes nowadays? (Base: All respondents n=5609)

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Only four out of ten consumers are aware of a brand that actively supports good causes - % aware of a brand supporting a good cause TOTAL

39%

Brazil

66%

China

55%

Canada

44%

Germany

37%

US

32%

UK

31%

India

31%

Italy Japan

29% 17%

Q20. Are you aware of any brands that actively support good causes through their products/services? (Base: All respondents n=5609)

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Spontaneous awareness of brands associated with good causes is low

18%

17% Krombacher beer, 41%

25%

14% DASH, 20%

25% 11%

26% Globally, the # one unprompted brands associated with good causes are: #1 = Coke, 10% #2 = McDonalds, Avon, Natura, Banks, Krombacher Beer, 4% respectively Q21. What brands are these? UNPROMPTED (Base: All those aware of a brand at Q20 n=2181)

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Top two brands with a good cause behind their products - Top two brands per country (prompted) -

1) Body Shop =42% 2) Dove =31%

1) Body Shop = 43%

1) Coke = 18%

2) Virgin = 12%

2) Nike =13% 1) Coke 69%

1) Newman’s Own =26% 2) Cheerios = 20%

1) Benetton =24% 2) Coke = 17%

2) Project Red 34% 1) Toyota Prius= 34% 2) Nike = 21% 1) Coke = 51%

Globally the brands most commonly associated with a good cause are‌ #1) Coke = 27% #2) Avon =18% #=3) Dove =16%

2) Dove = 48% 1) Avon 43% 2) Coke 29%

#=3) Nike = 16% #4) The Body Shop = 15%

Q23. What brands are these? PROMPTED (Base: All respondents n=5609)

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Consumers prefer to buy brands that support good causes, but they need to be convenient and competitively priced 38%

I prefer to buy brands that support good causes when they are convenient and competitively priced

37% 29%

18%

I would buy a brand that supports a good cause as much as I can

44%

14%

11%

6%

TOTAL US

54%

54%

41% 45% 46%

UK Germany 62%

Italy

23%

China Japan

23% 23%

India Canada

17% 14%

Brazil

20%

17% 15%

I will occasionally buy a brand because of the cause it supports

19%

10%

16%

20% 17% 17%

8%

Whether a brand supports a good cause or not makes no difference to my buying decision

16% 18% 15%

10% 13% 8% 9%

28%

25%

31% 19%

Q27. Which of the following ONE statement comes closest to how you buy brands of products or services that support a good cause that you care about? (Base: All respondents n=5609)

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Good causes have got people talking – word of mouth is the best way to share information on good causes Talk to friends and family

86%

Talk to colleagues

53%

Email or instant message someone

30%

Talk to people in the community where I live

30%

Talk to people I know through voluntary work

18%

Talk to people I know through schools

14%

Send a text message

13%

Talk to people I know through religious organisations

12%

Share information on social networking sites (MySpace, Facebook, or other online communities )

11%

TOTAL INTERNET

! Consumers in Brazil (65%) and India (50%) are most likely to share information on good causes via online information sources

40%

Q14. Which of the following ways, do you share information or opinions with other people about good causes? (Base: All those who search for information n=5609)

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Word of Mouth from like minded people is the most credible source of information on good causes - Credibility of information sources -

59%

Recommendation from a person like yourself

54%

Television news coverage

51%

Article in business magazines

- Credibility of organisations/individuals 61%

A person like yourself

60%

Doctor or healthcare specialist

56%

Local community organisation

News coverage on the radio

50%

Academic

Articles in newspaper

50%

Church or spiritual advisor

49%

Work colleagues

49%

Free content encyclopaedia such as Wikipedia

45%

Search engines

41%

A company's own website Communications issues by companies such as press release, annual report and Social networking sites (MySpace, Facebook, other)

Professional advisor such as a lawyer

39%

NGOs representative

39%

Local council

35%

44% 42% 36% 36%

33%

CEO of a company

Corporate or product advertising

33%

Companies' spokesperson

31%

46%

Government official or regulator elected official

Email updates issues by a company

Weblogs or blogs

50%

Blogger

32% 27%

Q27 Now if you wanted to find out more information about brands that support a good cause or a particular brand that does, how credible do you feel each of the following sources would be? Q28 And if you wanted to find out more information about brands that support a good cause or a particular brand that does, how credible do you think the following organisations or individuals would be? (Base: All respondents n=5609)

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Consumers prefer brands to communicate about good causes via the TV, Radio and Newspapers Information on TV or radio

53%

Information in local newspapers

45%

Company's website

44%

Advertising

42%

Information in shops

40%

Email

28%

Live event e.g. concert, fair

26%

Information in schools

25%

Information in libraries or public places

24%

Letter or leaflet sent by post

22%

Text messages

10%

Social networking e.g. taking part in an online discussion/chat room

10%

Other

3%

Voicemail

3%

Q29. How would you like brands to TELL YOU about any good causes they support? (Base: All respondents n=5609)

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Quality and Price still drive our purchase decision making but having a “good purpose� is more important than design and brand loyalty 47% 49% 50% 47%

Quality

TOTAL US UK

52%

45%

56% 55% 60%

29%

Price

28%

16% 21%

25% 28%

38% 33%

40%

Good Purpose

3%

India Canada

Design / Innovation

Brazil 14%

5%

8% 8%

15%

4% 5% 6%

3%

Brand loyalty

!

6% 6%

3% 4% 2%

2%

6% 2% 5% 2%

Italy China

12%

9% 8%

2%

Germany

Japan

34%

8% 9%

7%

66%

11%

If two products were of the same quality and price, good purpose would be the most influential factor when choosing one brand over another (41%, followed by design at 32% and finally brand loyalty at 26%)

3%

Q30. Now I would like you to think about the reasons why you buy one particular brand over another. Please put the following factors in the order that reflects your decision when selecting a brand with the most important factor first.

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Consumers are willing to pay more for brands which support good causes they believe in 70% 72%

78%

92%

71%

TOTAL MORE 48%

6%

70% 67% 65% 64%

22%

4%

5%

A lot more

4%

3% 2% 3%

7%

1%

64%

TOTAL India China Brazil Italy Canada Germany US UK Japan

70% 74%

67%

68%

A little bit more

67% 65%

47% 7%

Nothing more

58% 62%

25% 15%

25%

26%

27% 28% 31% 32%

39%

Q32. How much more would you be prepared to pay for a brand that supports a good cause that you believe in?

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“Tell us you are Doing Good” – Brands that support good causes generates consumer engagement and action Recommend the product to others

47%

Buy it

45%

Want to use it

44%

Do research to learn more about it

42%

Talking about the product/service to my family and friends

39%

Share information about it

34%

Visit the product or company website

33%

Trust the product more Be more open to information the company shares with you about it Support its commitment to larger societal issues Seek the opinion of an specialist such as a doctor

27% 25% 19% 17%

Defend the brand to critics

16%

Email, text or blog positively about it Nothing Not interested in the brand that supports good causes

13% 4% 2%

Q33. If you are interested in products or services from brands that support a good cause, which of the following actions would you consider doing (Base: All respondents n=5609)

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PART FOUR

Good Causes and Prescription Medicines / Devices

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Good causes for prescription medicines to get involved in Enabling everyone to live a healthy life

65%

Fighting global HIV/AIDS

56%

Protecting the environment

51%

Reducing poverty

49%

Equal opportunities to education

32%

Supporting human and civil rights

25%

Helping to raise people's self esteem Buiding understanding and respect for other cultures Supporting the creative arts

21%

14%

11%

Q34 Focusing for a moment on just prescription medicines or devices. If a company that provides these products was looking to support a good cause which of the following good causes is right for prescription medicines or devices to be involved with? (Base: All respondents n=5609)

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Consumers are more likely to buy from / recommend prescription medicine /device companies if they support healthcare causes Brazil: 75%

Support a product that diagnoses or treats a lifethreatening condition (cancer, stroke, ‌)

Canada: 73% Brazil: 77%

Support a product that address a major health issue in developing countries (TB, HIV, Malaria)

Italy: 65%

55%

Germany: 65%

Support a product that address a major health issue of the developed world (smoking, obesity, diabetes,‌)

Support a product that diagnoses or treats your quality of life but is not life threatening

Italy: 74%

65%

China: 59% 47%

US: 52% Canada: 52%

Canada: 44% 36%

China: 42% Italy: 42%

Q33. In which of the following cases, if any, would you be more likely to buy from or recommend a company (Base: All respondents n=5609)

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Consumers strongly believe prescription medical brands should be allowed to promote with good causes even if the cause is not related to treatment TOTAL

71%

Brazil

82%

Italy

81%

China

78%

India

73%

US

66%

Germany

66%

Canada

65%

UK Japan

64%

59%

Q33. How much do you agree or disagree that prescription medical brands should be allowed to promote and work with good causes even if the cause itself isn’t related to what the product is intended to treat? (Base: All respondents n=5609)

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GLOBAL CONSUMER SURVEY 2007 - OVERALL RESULTS -

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goodpurpose™ 2007  

Overall results for the 2007 goodpurpose™ Global Consumer Survey