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Good companies in the age of austerity paul flatters trajectory

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Presentation from Paul Flatters, Trajectory at the CIM Good Marketing Conference, ARU Chelmsford on 30 November 2012

Presentation from Paul Flatters, Trajectory at the CIM Good Marketing Conference, ARU Chelmsford on 30 November 2012

Published in: Business, Technology
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  • 1. Good companies in the age of austerity Prepared for CIM Social Marketing Group Nov 2011
  • 2. Agenda• Objectives• Methodology• Influences on purchasing decisions• What makes a good company• The relationship between the consumer and the company• Conclusions
  • 3. Objectives• Original research into the varying influence aspects of a companys performance has on product purchasing.• Identification of what values define a good company and how this changes for different genders and life stages.• Exploring how influential being good is across different sectors including financial services, technology, food and drink and fashion.• Understanding of consumer perspectives on how the behaviour of a company they purchase from reflects on them• Assessment of the appetite for more information about a companys behaviour and sources of information that they would trust to tell them
  • 4. Methodology• 4 x 90 minute focus groups to explore the issues and help define the parameters for the questionnaire• 2005 interviews with UK nationally representative sample• Fieldwork conducted in June 2011
  • 5. Headlines: Influences on purchasing decisions• How good a company is and how it behaves towards its customers and communities has far more influence on consumers than its ethical values or its donations to charities. – Nine out of ten say ‘how good a company is’ is influential when considering purchasing a product or service • (91% combined ‘quite influential’, ‘very influential’ or ‘extremely influential’) – Nine out of ten say ‘how it behaves towards its customers and communities’ is influential when considering purchasing a product or service • (90% combined ‘quite influential’, ‘very influential’ or ‘extremely influential’) – ‘A company’s ethics – environmental, sourcing, sustainable, employment policies’ and ‘the company donates a percentage of profits to charity and a good cause’ are less likely to be influential when considering purchasing a product or service • (60% and 53% respectfully - combined ‘quite influential’, ‘very influential’ or ‘extremely influential’)
  • 6. Being a ‘good’ company has more influence on purchasing decisions than ethics or CRM In general, how influential is each of the following when considering purchasing a product or service? Not at all Not very How good the company is 7 36 37 18 Quite Very 91% ExtremelyHow a company behaves towards 7 30 35 25 its customers and communities ↑ Women (93%) 91% A companys ethics - environmental, sourcing, 21 37 21 12 ↑ Women (77%) sustainable, employment policies 70% The company donates a percentage of profits to charity or 31 33 14 6 ↑ DE (66%) a good cause ↑ 18-24 (70%) 53% 0% 20% 40% 60% 80% 100% Base: 2005Source: Great Good survey, 23 Red and Trajectory
  • 7. Quality, price and service are still most influential In general, how influential is each of the following when considering purchasing a product or service? The quality of the product or 1 12 36 50 service Not at all Not veryThe price of the product or service 1 13 32 52 Quite Very 95% of those over 45 are influenced vs. Extremely 79% of 18-24 yr olds Aftersales service from a 7 28 37 26 company 0% 20% 40% 60% 80% 100% Base: 2005Source: Great Good survey, 23 Red and Trajectory
  • 8. Headlines: What makes a good company• People associate values such as honesty (56%) and reliability (53%) with a ‘good’ company more than ethical issues such as sustainability (12%)• Being ‘good’ is most influential for financial services organisations
  • 9. Defining a ‘good’ company Honesty, reliability, responsibility and fairness are amongst the most important factors in what makes a company ‘good’ Which word do you MOST associate with a good company?30% 27%25%20% 17%15% 12% 10% 10%10% 7%5% 4%0% Product/service Honest Customer Reliable Fair pricing Responsible Fair quality service policy Base: 1949 Source: Great Good survey, 23 Red and Trajectory
  • 10. Values are key to a ‘good’ company People associate values such as honesty and reliability with a ‘good’ 70% company more than ethical issues such as sustainability Which of the following words and phrases would you associate with a good company? ↑ over-55s (68%) 60% Customer Service Honest ↑ over-55s (60%) Reliable 50% Product/service quality Fair pricing policy 40% Product related Responsible ↑ over-55s (43%) Values Ethics related 30% Fair 20% ↑ over-55s (19%) Environmentally friendly Caring Safe Accessible People centred Contributes to local Innovative Sustainable communities 10% Passionate Popular 0% Base: 2005Source: Great Good survey, 23 Red and Trajectory
  • 11. Values are key to a ‘good’ company People associate values such as honesty and reliability with a ‘good’ 70% company more than ethical issues such as sustainability Which of the following words and phrases would you associate with a good company? 60% Customer Service Honest Reliable 50% Product/service quality Fair pricing policy ↓ 18-34 (34%) 40% Product related Responsible Values Ethics related 30% ↑18-35 yr olds (15% popular, 13% Fair passionate) 20% Environmentally friendly Caring Safe Accessible People centred Contributes to local Innovative Sustainable communities 10% Passionate Popular ↓ 8% of 18-34 yr olds 0% Base: 2005Source: Great Good survey, 23 Red and Trajectory
  • 12. Values are key to a ‘good’ company People associate values such as honesty and reliability with a ‘good’ 70% company more than ethical issues such as sustainability Which of the following words and phrases would you associate with a good company? 60% Customer Service Honest Reliable 50% Product/service quality Fair pricing policy 40% Product related ↑ women (21% safe, 19% caring) Responsible Values Ethics related 30% Fair 20% Environmentally friendly Caring Safe Accessible People centred Contributes to local Innovative Sustainable communities 10% ↑ men say innovative (19%) Passionate Popular ↑ women (23% environmentally friendly, 16% contributes to the 0% community) Base: 2005Source: Great Good survey, 23 Red and Trajectory
  • 13. Values are key to a ‘good’ company People associate values such as honesty and reliability with a ‘good’ 70% company more than ethical issues such as sustainability Which of the following words and phrases would you associate with a good company? ↓ families (52%) 60% Customer Service Honest ↓ families (45%) Reliable 50% Product/service quality ↓ families (40%) Fair pricing policy 40% Product related Responsible ↓ families (33%) Values Ethics related 30% Fair ↑ families (22%) 20% Environmentally friendly Caring Safe Accessible People centred Contributes to local Innovative Sustainable communities 10% Passionate Popular ↑ families (11%) 0% Base: 2005Source: Great Good survey, 23 Red and Trajectory
  • 14. Being ‘good’ most influential for financial services… How much does a company being ‘good’ influence your buying decisions when purchasing products or services in the following categories? Financial services 7 12 31 32 19 Technology 7 13 35 31 14 Not at all Utilities 7 14 36 29 13 Not very Quite VeryTravel and vacations 9 14 36 28 14 Extremely Food and drink 7 15 36 29 13 Base: 2005 0% 20% 40% 60% 80% 100%Source: Great Good survey, 23 Red and Trajectory
  • 15. …but less influential for petroleum and fashion How much does a company being ‘good’ influence your buying decisions when purchasing products or services in the following categories? Automotive 10 14 35 28 12 Further education 12 18 33 25 13 Not at all Entertainment & Leisure 10 23 38 22 7 Not very Quite Very Petroleum 14 24 35 19 8 Extremely Fashion 14 26 35 18 7 Base: 2005 0% 20% 40% 60% 80% 100%Source: Great Good survey, 23 Red and Trajectory
  • 16. Headlines: Relationship between consumer and company• Nearly half believe that the ‘good’ values and behaviour of a company they buy from reflect well on them (48%). Fewer agree that the ‘bad’ values and behaviour of a company they buy from reflect poorly on them (40%).• Most people feel that companies have a role to play in the well- being of communities and wider society (64%).
  • 17. ‘Good’ values reflect on buyer more than the ‘bad’ To what extent do you agree with the following statements? ↑ Young people (56% of 18-34 yr olds) ↑ Families (53%) The ‘good’ values and behaviour of a company I 4% 5% 42% 33% 15%buy from reflects well on me Disagree strongly Disagree slightly Neither agree nor disagree Agree slightly The ‘bad’ values and behaviour of a company I Agree strongly 7% 9% 44% 26% 14% buy from reflects poorly on me 0% 20% 40% 60% 80% 100% Base: 2005Source: Great Good survey, 23 Red and Trajectory
  • 18. Companies have a role to play in the well-being of communities and wider society To what extent do you agree with the following statements? Disagree strongly Disagree slightly Companies should adopt a role in the Neither agree nor well-being of 31% 42% 22% disagree Agree slightly communities and wider society Agree strongly ↓ 18-24 yr olds (52%) Base: 2005 0% 20% 40% 60% 80% 100%Source: Great Good survey, 23 Red and Trajectory
  • 19. Headlines: Sources of Trust• Three fifths would trust ‘word of mouth’ to tell them about a company’s good behaviour (61%), whereas only one in ten would trust the company’s CSR reports (12%), 8% would trust the company’s advertisements and 6% would trust packaging.• Such lack of trust poses a significant challenge for companies wishing to respond to the majority of people who want to know more about a company’s good behaviour. – Three quarters (74%) would be interested in knowing more about the good behaviour of companies that they consider purchasing products or services from
  • 20. Word of mouth highly trusted… What sources would you trust to tell you about a companys good behaviour?70% ↑ Women (65%) 61%60% ↑ Over-65s (45%) ↓ Families (32%) ↑ Men (37%) ↑ Older people (44% over 45)50% ↓ Families (27%) ↓ Families (20%)40% 37% 35% 34% 30%30% 27% 25%20%10%0% Word of mouth Employees Review forums Third party Comparison Newspapers Charities and endorsement websites not-for-profit from an expert in organisations it the field has been Base: 2005 involved with Source: Great Good survey, 23 Red and Trajectory
  • 21. …whilst company sources are not aside from their employees What sources would you trust to tell you about a companys good behaviour? 70% 60% 50% 40% ↓ Families (9%) 30% 20% 12% 8% 8% 7% 6% 6% 8% 10% 3% 3% 0%-10% Base: 2005 Source: Great Good survey, 23 Red and Trajectory
  • 22. Companies are little trusted… …but peer-to-peer and third party sources of information are What sources would you trust to tell you about a companys70% good behaviour? Word of mouth Employees are the most60% trustworthy means for a company to communicate its good behaviour to consumers50% ↑ AB social grade(42%)40% Peer-to-peer Endorsement from an Employees Review forums Third party expert in the field Company30% Comparison websites Newspapers Charities and NGOs it has been involved with ↑ AB social grade(17%)20% The company’s CSR report10% The company’s Facebook Government advertisements Investors Celebrities relevant in the Packaging Twitter field0%
  • 23. Most people want to know more …with almost 1 in 5 ‘very interested’ in knowing more about a company’s good behaviour How interested would you be in knowing more about the good behaviour of companies that you consider purchasing products or service from?100%90% 19% ↑ Women80% (77%)70% Very interested60% Quite interested50% 55% Not very interested Not at all interested40%30%20% 21%10% 5% 0% Base: 2005 Source: Great Good survey, 23 Red and Trajectory
  • 24. Thank you Please contact: Paul Flatters, CEOpaul@trajectorypartnership.comwww.trajectorypartnership.com T:+44 (0)20 7902 1171

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