This document discusses insights from a survey about consumer attitudes toward innovation. It finds that: 1) While consumers are inspired by the promise of innovation, they first need reassurance from brands. 2) Consumer acceptance of brand innovation cannot be bought, it must be earned through addressing privacy, security, and environmental concerns. 3) Consumers rely on peer recommendations more than brand marketing to feel reassured about new products and services.

1. Innovation and the
Earned Brand
China

2. The Earned Brand | Edelman 2015 | pg 2
Four insights:
People believe in
the promise of
innovation.
Consumer
acceptance of
brand innovation
cannot be bought.
It must be earned.
While the promise
of innovation
inspires, people
first need to
be reassured.
“I rely on my
peers to reassure
me. Because their
experience is my
evidence.”
1 2 3 4

3. The Earned Brand | Edelman 2015 | pg 3
What is innovation?
A re-imagination of categories, products, services, operations,
models, design, etc. that create more value, for the brand and for
consumers.

4. And yet the Chinese consumers feel the pace
of business innovation is too fast
Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and
industry today and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, China.
(2015 Edelman Trust Barometer)
19%
TOO
FAST
The Earned Brand | Edelman 2015 | pg 4
JUST
RIGHT
21% 59%
TOO
SLOW
28% 19% 51%

5. The Earned Brand | Edelman 2015 | pg 5
And what can the
rest of us learn
from this?
How do consumers see innovation?
What are the
factors that stop
consumers
accepting and
embracing
innovations?
What are
consumers’
real feelings
about innovation?

6. The Earned Brand Methodology
Timing
April – May 2015
Quantitative Online Survey
10 countries: U.S., Mexico, Brazil,
France, Germany, U.K., China, Japan,
India and Australia
10,000 respondents, nationally
representative of age, gender, and region
based on most recent country status data
Mobile Diaries
25 millennials, with them on their
mobiles, for 2 weeks, in Brazil, U.K.,
India, China and the U.S.
The Earned Brand | Edelman 2015 | pg 6

7. The Earned Brand | Edelman 2015 | pg 7
People believe in the
promise of innovation.
Insight 1

8. Q5P1: Please select the statement from each group that best represents how you feel.
(Innovation is just an overused term, it’s not leading to anything) vs. (Innovation is
essential for us today and it’s helping us to progress). Q5P4: Please select the statement
from each group that best represents how you feel. (Innovation is making us more and
more like robots) vs. (Innovation is opening the human spirit) 10-country global total and
in China.
The Earned Brand | Edelman 2015 8
Innovation inspires people
“When you look at
anything innovative,
it will inspire you
and make you feel
more energetic.”
Zhu X, 22, China
92%
innovation opens
the human spirit
innovation is essential
and it’s helping us
to progress
77%
94%
90%

9. In China, consumers believe that business has
the biggest role in finding the next big thing
Q15. Where do you think the next big thing will come from?
In China. The Earned Brand | Edelman 2015 | pg 9
BUSINESS INDIVIDUALS/
PEOPLE LIKE ME
ACADEMICS/
UNIVERSITIES
15%
87% 45% 30%
79% 36%

10. They believe that brand innovation should have
big goals with societal impact
Q14. What do you think the role of innovation is for brands today and in the future? (in the future)10-country
global total and in China.
to
improve
society
to push our
thinking as
a society
69% 66%63%
The Earned Brand | Edelman 2015 | pg 10
agree that brand innovation
needs to impact societyin9 10
73% 65% 71%
to let us be one
step ahead of
other countries

11. 57% 54%
37%
24%
14% 14%
47%
40%
47%
43%
20%
35%
Technology Mobile Energy Healthcare Food and beverage Education
They want more innovation to come from traditional
industries
Q65: Thinking more specifically about the innovation in the products and services you use throughout your life, what industries do you see the most innovation in
TODAY? Q66: … what industries do you want to see innovation in TOMORROW? In China.
Percentage of China’s consumers who say they see innovation coming from each
industry sector today, and who want to see it from each sector tomorrow:
INNOVATION GAP
10
19
The Earned Brand | Edelman 2015 | pg 11
21
6
INNOVATION TODAY INNOVATION TOMORROW
WANT LESS TOMORROW WANT MORE TOMORROW

12. And they question your motives
66%
70%
65%
69%
67%
61%
65% 65%
67%
62%
65%
Global Australia U.K. U.S. Japan France Germany Brazil China India Mexico
Q14. What do you think the role of innovation is for brands today and in the future? (today) 10-country
global total and in China.
The Earned Brand | Edelman 2015 | pg 12
consumers believe brands
are innovating to make more
money for the company
in2 3
Global Australia U.K. U.S. Japan France Germany Brazil China India Mexican

13. The Earned Brand | Edelman 2015 | pg 13
Insight 2
Consumer acceptance
of brand innovation
cannot be bought.
It must be earned.

14. The stakes:
Because of their concerns, they’re not buying
Q27. Thinking about the below, please indicate which of the following you feel is happening in the world today. … IMPACT ON
PURCHASING DECISION 1 = Has no impact on what I buy … 4 = Makes me not want to buy something. In China.
say they will not buy
because of their concerns
The Earned Brand | Edelman 2015 | pg 14
90%
Privacy
issues
Being
always
on
Security Environment

15. 3 in 5 have privacy concerns
Privacy concerns are especially strong in
Germany, the U.K., the U.S. and Australia.
Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total and in China
The Earned Brand | Edelman 2015 | pg 15
Privacy
issues
58%

16. 1 in 3 are concerned about
having to be always on
Germany and Brazil are most concerned;
Japan and China are less so.
Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total and in China
The Earned Brand | Edelman 2015 | pg 16
Being
always on
36%

17. 1 in 3 have security
concerns
Security concerns are highest in Japan
and the U.S., and less of an issue in
China.
The Earned Brand | Edelman 2015 | pg 17
Security
33%
“Some back door issues may
leak personal information,
including personal banking
details.”
Yao, China
Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total and in China

18. And the majority have
concerns about the
impact on the environment
Environmental concerns are global,
but strongest in Europe and Latin America.
The Earned Brand | Edelman 2015 | pg 18
Impact on
environment
52%
“Technology and innovation bring
convenience, but it brings
problems, too. Cars change my life,
but too many cars result in air
pollution, traffic jams and parking
problems.”
Yao, China
Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total and in China

19. The Earned Brand | Edelman 2015 | pg 19
Insight 3
While the promise of
innovation inspires,
people first need
to be reassured.

20. Consumers are twice as likely to want to be
reassured than inspired by a brand
Q35: When a brand tells me about something, I want it to…
“Reassure me of quality,” “Inspire me” 10-country global total
The Earned Brand | Edelman 2015 | pg 20
people want to be
REASSURED
in2 3
people want to be
INSPIRED
in1 3

21. We may be innovating,
but we are failing them as marketers
The Earned Brand | Edelman 2015 | pg 21
say brands are not moving
in the right direction in how
they communicate
in2 3
Q20: Thinking about change in the past 5 years, how do you feel the [ … ] industry has evolved in
relation to the following factors: How brands in this sector…(communicate with me) / (listen to
me) // (moving in wrong direction) 10-country global total.

22. They feel like brands are shouting at them.
In most markets, what brands say doesn’t feel real
Q21: Please indicate how much you agree or disagree with the following statements. (I’m getting bored/frustrated by
constantly being told I need to upgrade/update the products I already have.) (Top 2 box) 10-country global total and in
China.
The Earned Brand | Edelman 2015 | pg 22
57%
are bored/frustrated
by constantly being told
they need to upgrade/update
52%

23. The Earned Brand | Edelman 2015 | pg 23
Insight 4
“I rely on my peers to
reassure me. Because
their experience is
my evidence.”

24. We’ve always known that peers provide
recommendations, but today peers also help
convert purchasers
Q41: Thinking about the conversations you have online and offline with friends and other people like
you about brands, products and services you purchase, what impact do they have on you?
Build inspiration
Push
consideration
The Earned Brand | Edelman 2015 | pg 24
8%
18%
18%
36%
41%
31%
30%
37%
They get me
They give me a sense community
They suggest products/services
They push me to try new things
They make me trust the brand more
They help me make decisions
They help me overcome my concerns
about the product / service
They warn me about the risks
The impact of online/offline conversations about
brands with friends and other people like me:
Moment
of truth

25. The channels consumers rely on to be reassured are
peer-to-peer, rather than brand-to-consumer
When millennials want to learn about
brand innovation, their go-to channels
are peer-to-peer.
The Earned Brand | Edelman 2015 | pg 25

26. Brands win if they power the peer conversation
“Our unique
asset is our host
community.”
Nathan
Blecharczyk,
founder of AirBnB
Q36. How much do you agree or disagree with the following statements? in China.
The Earned Brand | Edelman 2015 | pg 26
67%
I trust a brand more if it
encourages me and and other
customers to review its
products and services
I trust a brand more if I find
it easy to review its
products and services
64%
82%
81%

27. The Earned Brand | Edelman 2015 | pg 27

28. The Earned Brand | Edelman 2015 | pg 28

29. The Earned Brand | Edelman 2015 | pg 29

30. The Earned Brand | Edelman 2015 | pg 30
Recommendation of
four brand behaviors

31. Two-thirds of consumers are undecided about
innovation. What do they need from brands?
Last mover First mover
8% 15%
Percent of respondents who fall into
each consumer innovation typology:
The Earned Brand | Edelman 2015 | pg 31
Methodology: Statistical analysis of consumer groupings based on their attitudes to brand innovation showed that 66% of
consumers are open to innovation—but have concerns that need to be addressed before they will buy. They also have specific
expectations for how brands must behave to address those concerns. Other consumers were either “first movers” (15%), “last
movers” (8%), or resistant to innovation (11%).
66%
Undecided Consumers

32. What undecided consumers need
from brands when it comes to innovation
The Earned Brand | Edelman 2015 | pg 32
Statistical analysis of consumer groupings based on their
attitudes to brand innovation, and their risk concerns.
Source: mobile diaries, qualitative groups
and quantitative segmentation
Reassure me about
my personal
concerns
Inspire me by
doing something
new and different
Show me how I
can participate
in your brand
Reassure me about
my societal
concerns

33. The 4 brand behaviors
that address consumer needs around innovation:
Have a
Purpose
Inform
and Educate
Make
your Mark
Live your
Character
Reassure me about
my personal
concerns
Inspire me by
doing something
new and different
Show me how I
can participate
in your brand
Reassure me about
my societal
concerns
The Earned Brand | Edelman 2015 | pg 33
Brand
Behaviors
Source: mobile diaries, qualitative groups
and quantitative segmentation

34. Inform
and Educate inform transparently so that
you can educate consumers
and help them make choices
The Earned Brand | Edelman 2015 | pg 34
Brand behaviors:
• Explain your motive for innovating.
• Address concerns about the social and
environmental impacts.
• Engage and educate consumers across
different channels and platforms.
Consumer need:
I am empowered by
information. Give
me all the details
and let me go as
deep as I want.
To reassure me
about my personal
concerns
Source: mobile diaries, qualitative groups
and quantitative segmentation

35. Have a
Purpose
operate with purpose
to show how you fit into
the bigger picture and
are an active participant
in society
The Earned Brand | Edelman 2015 | pg 35
Consumer need:
I believe in progress—
but not at the cost of
hurting my community
or compromising my
values.
Brand behavior:
• Be authentic.
• Show that you value human interaction and
have respect for tradition and heritage.
• Add value beyond your product and service.
To reassure me
about my societal
concerns
Source: mobile diaries, qualitative groups
and quantitative segmentation

36. Make
your Mark
make your mark by
doing something unique
or differentiating that is
worthy of attention
The Earned Brand | Edelman 2015 | pg 36
Consumer need:
I like to be inspired by
new ideas—as long
as they really are new
and different. Let’s
solve a problem in a
cool, creative way!
Brand behaviors:
• Show how you stand out from the crowd.
• Offer engaging content that is timely, has
resonance, and is entertaining.
• Spark peer conversations and debate on
many channels with a clear and
consistent brand voice.
To inspire me by
doing something
new and different
Source: mobile diaries, qualitative groups
and quantitative segmentation

37. Live your
Character
live with character that is
true to your brand and has
a personality that consumers
can buy into
The Earned Brand | Edelman 2015 | pg 37
Consumer need:
Brands can help me
express my identity.
I want to look smart,
creative and
connected.
Brand behaviors:
• Be transparent when it comes to
consumer privacy and sharing of data.
• Offer inspirational, exciting brand
experiences in which consumers can
participate.
And show me how I
can participate in
your brand
Source: mobile diaries, qualitative groups
and quantitative segmentation

38. The Earned Brand | Edelman 2015 38
Case Study:
The Freshest Orange Juice

39. The Earned Brand | Edelman 2015 39
Case Study:
Samsung Safety Truck

40. Case Study:
Adobe Photoshop
Murder Mystery

41. The Earned Brand | Edelman 2015 41
Case Study:
Dove #Choosebeautiful

42. Recommendation: Four brand behaviors
The Earned Brand | Edelman 2015 | pg 42
Statistical analysis of consumer groupings based on their
attitudes to brand innovation, and their risk concerns.
Brand
Behaviors
Source: mobile diaries, qualitative groups
and quantitative segmentation
Have a
Purpose
Inform
and Educate
Make
your Mark
Live your
Character

43. The Earned Brand | Edelman 2015 | pg 43
Thank you.
Innovation and the
Earned Brand

44. The Earned Brand | Edelman 2015 | pg 44
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