Earned Brand 2016 - Global Results

1. Earned Brand2016

2. The Earned Brand Earned Brand 2016 Global | 2 The Earned Brand’s story is not simply told, it is demonstrated and experienced; and to do that, brands can’t operate with a style guide alone. The Earned Brand has a world view and a belief system; a purpose and a reason for being – one that defines not just the communications, but how the brand behaves online, offline, and in all contexts. An expressed set of values informs which products are made, which language is used, how customers are treated, and ultimately the legacy the brand leaves in the communities it serves.

3. How is your relationship going?

4. Feeling a little left out? 86%rely on peer sources to learn about brands 71% rely on peer sources for buying decisions 58%use/woulduse ad blockers Your consumer relationship “I rely on my peers to reassure me. Because their experience is my evidence.” - Earned Brand 2015 Q31 (Top 4 Box “Rely on most,” net of 3 items), Q32 (Net of 5 items), Q33 (Net of 3 items) Earned Brand 2016 Global | 4

5. Meeting their growing expectations? 62% will not buy if a brand fails to meet societal obligations 60%doing good should be part of a brand’s DNA Your consumer relationship 55%brands cando more to solve societal ills than government Q17 (Top 4 Box “Agree”), Q20 (Net of 3 items) Earned Brand 2016 Global | 5

6. Private-label alternatives New business models Changing distribution channels Earned Brand 2016 Global | 6 Someone trying to break you up? Your consumer relationship

7. The consumer relationshiphas never been more important to your business Buy Advocate Defend

8. We wanted to find out How strong is the consumer-brand relationship? How does a stronger relationship lead to better business results? How can brands strengthen the relationship?

9. Earned Brand 2016 Methodology A Global Survey Timing April 7 – April 25, 2016 13 countries Online survey in Australia, Brazil, Canada, China, France, Germany, India, Japan, Mexico, The Netherlands, Singapore, U.K., and U.S. 13,000 respondents 1,000 per country, nationally representative of age, gender, and region based on most recent country census data. Social listening In China, Germany, India, the U.K., and U.S., we listened to consumer conversations on social media to assess the impact of 15 recent cause-related brand campaigns or actions. Earned Brand 2016 Global | 9 Unless otherwise specified, all data is from the Earned Brand 2016 study. The full text of the questions referenced in the report can be found in the End Notes at the end of the Global Report. Full explanations of the Brand Relationship Index and other analyses performed, along with detailed sample and margin of error information, can be found in the Technical Appendix.

10. 18brand categories Travel Mobile carriers Social media Automobile Personal care Beer, wine, and spirits Luxury goods Prescription medicines Credit cards Utilities Grocery stores Retailers Financial services Food and beverage Home energy management Fashion OTC medicines Household products Edelman Brand Relationship Index Earned Brand 2016 Global | 10

11. What is your favorite brand – one you already buy – in this category? Earned Brand 2016 Global | 11 Edelman Brand Relationship Index

12. Builds trust at every touchpoint Makes its mark Invites sharing, inspires partnership Embodies unique character Tells a memorable story Listens openly, responds selectively Acts with purpose How well do you feel this brand…? Earned Brand 2016 Global | 12See Appendix for a full explanation of the seven dimensions of the consumer-brand relationship. Edelman Brand Relationship Index

13. The Edelman Brand Relationship Index is the average of the seven dimensions Earned Brand 2016 Global | 13 Builds trust at every touchpoint Makes its mark Invites sharing, inspires partnership Embodies unique character Listens openly, responds selectively Tells a memorable story Acts with purpose See Appendix for a full explanation of how the Index was built. 0-100 Edelman Brand Relationship Index

14. The score falls short of the full potential Relationship strength 0 10020 40 60 80 Edelman Brand Relationship Index Global Average 38 See Appendix for a full explanation of how the Index was built. Earned Brand 2016 Global | 14

15. The consumer-brand relationship falls short around the world 39 43 40 32 33 30 32 32 53 34 52 39 Canada U.S. Mexico Brazil Lowest The NetherlandsU.K. France Germany 32 India China Singapore Japan Australia Highest See Appendix for a full explanation of how the Index was built. Earned Brand 2016 Global | 15

16. The consumer-brand relationship falls short across categories 2016 Edelman Brand Relationship Index by category See Appendix for a full explanation of how the Index was built. Earned Brand 2016 Global | 16 43 43 42 41 40 40 39 39 39 39 38 38 37 36 35 34 33 33

17. Earned Brand 2016 Global | 17 falls short across demographics The consumer-brand relationship 2016 Edelman Brand Relationship Index Generation Gender See Appendix for a full explanation of how the Index was built. 40 3638 44 39 32 28

18. They’re willing to go further with you

19. Earned Brand 2016 Global | 19 The fiverelationship stages At five points, the data shows meaningful shifts in consumer attitudes and behaviors toward brands Strength of relationship with the favorite brand they buy in a category I may buy/use your product, but I don’t really put much thought into it. I know a little about you, beyond your product I am making an educated choice. Given a choice, I would pick your brand. I appreciate what you stand for. We share common values and see the world in a similar way. We do things together and for each other. We share a past and a future. See Appendix for a full explanation of how the five relationship stages were created.

20. So far they’re involved, but commitment is the last mile 38Strength of relationship with the favorite brand they buy in a category Edelman Brand Relationship Index Global Average See Appendix for a full explanation of how the Index was built. Earned Brand 2016 Global | 20

21. Commitmentwithin reach– for all brand categories Percent of relationships in category that are committed Committed 17% 14% 13% 13% 13% 13% 12% 12% 12% 12% 12% 10% 10% 10% 10% 8% Automobile Social media Mobile carriers Financial services 13% Fashion Grocery stores Credit cards Travel Personal care Retailers Food and beverage 12% Luxury goods Beer, wine, and spirits Utilities Prescription medicines Home energy management Household products OTC medicines “Committed” is the last stage on the Earned Brand Relationship Index. See Appendix for a full explanation of how the five relationship stages were built. Earned Brand 2016 Global | 21

22. Stay Loyal When I buy products in this category, it has to be this brand I am happy to share my personal data with this brand I will stick with this brand even if a competitor is: • getting better reviews • more innovative • greener • treats workers better Earned Brand 2016 Global | 22 Strongrelationships drive and protect your bottom line Buy First I am one of the first to try the brand’s new products I am happy to pay more for this brand’s products and services Q14, ways in which consumers can support a brand.

23. 0 80 60 40 20 Q14 (Top 4 Box, “Describes me”.) Average of items associated with buying first and staying loyal by relationship level. See Appendix for a full explanation for how the five relationship stages were built. Earned Brand 2016 Global | 23 Clear majority of buyers will buy first and stay loyal The untapped opportunity Percent of buyers who will buy first and stay loyal Interested Involved Invested CommittedIndifferent

24. Earned Brand 2016 Global | 24 Defend I defend this brand if I ever hear someone criticize it I will stick with this brand even if something goes wrong Strongrelationships mean your customers will go to work for you Advocate I always recommend this brand if someone asks I advocate for this brand even when I am not asked I like/rate what the brand is saying on social media I participate in creating the brand’s content Q14, ways in which consumers can support a brand.

25. 0 80 60 40 20 Q14 (Top 4 Box, “Describes me”.) Average of items associated with advocating and defending by relationship level. See Appendix for a full explanation for how the five relationship stages were built. Earned Brand 2016 Global | 25 The untapped opportunity Clear majority of buyers will advocate for and defend your brand Percent of buyers who will advocate for and defend Interested Involved Invested CommittedIndifferent

26. Interested Involved Invested CommittedIndifferent The 4 behaviors that increase the most from Involved toCommitted I participate in creating the brand’s content Owned +48pts +38pts +35pts +35pts I like/rate whatthe brand is saying on social media I am happyto share personal data withthis brand I am one of the first to try the new products/services of this brand whenthey come out Q14 (Top 4 Box, “Describes me”.) Behaviors that had the greatest percentage point increase from the Involved to the Committed relationship levels. See Appendix for a full explanation of how the five relationship stages were built. Earned Brand 2016 Global | 26 Percentage point change

27. You can’t buy commitment

28. Television 62% 80% regularly use traditional media sources for information about brands Earned Brand 2016 Global | 28 Learning about brands: earned media matters Percent who use each media type regularly Q30 (Regular Usage), (Traditional media callout is a net of 5 items) Search engines Social media sites News articles Shopping/retail websites not owned by brand 49% The brand’s website 56%78% 57% 51% Magazines 37% Blogs 33% The radio 37%

29. Interested Involved Invested CommittedIndifferent Advertising buys Interest 43% Advertising is primary point of engagement 35% 34% Paid Peer Owned Percent who have used each type of media to engage with their favorite brand in the last 90 days Q15 (Paid is a net of 4 items, Peer is a net of 7 items, and Owned is a net of 6 items) by relationship level. See Appendix for a full explanation for how the 5 relationship stages were built. Earned Brand 2016 Global | 29

30. Interested Involved Invested CommittedIndifferent Involved consumers engage across all channels 43% 35% 34% Paid Peer Owned Percent who have used each type of media to engage with their favorite brand in the last 90 days 57% Peer conversations nearly as important as paid54% 52% Paid Peer Owned Q15 (Paid is a net of 4 items, Peer is a net of 7 items, and Owned is a net of 6 items) by relationship level. See Appendix for a full explanation for how the 5 relationship stages were built. Earned Brand 2016 Global | 30

31. 63% 66% 64% Paid Peer Owned Paid 65% Talking about and with the brand matters far more than advertising 73% 72% Peer Owned 57% 54% 52% Paid Peer Owned 43% 35% 34% Paid Peer Owned CommittedInterested Involved Invested Percent who have used each type of media to engage with their favorite brand in the last 90 days Conversations are the foundations of a committedrelationship Q15 (Paid is a net of 4 items, Peer is a net of 7 items, and Owned is a net of 6 items) by relationship level. See Appendix for a full explanation for how the 5 relationship stages were built. Earned Brand 2016 Global | 31

32. 57% 54% 52% Paid Peer Owned From Involved to Committed, usage of peer and owned grow twice as fast 43% 35% 34% Percent who have used each type of media to engage with their favorite brand in the last 90 days Paid Peer Owned Interested Involved Invested CommittedIndifferent 65% 72% 73% Paid Peer Owned +8 +18 +21 Q15 (Paid is a net of 4 items, Peer is a net of 7 items, and Owned is a net of 6 items) by relationship level. See Appendix for a full explanation for how the 5 relationship stages were built. Earned Brand 2016 Global | 32

33. 62% Earned Brand 2016 Global | 33 Consumers value different sources for different reasons How respondents describe different sources of information about brands and products Q28 (Definitions for Earned, Paid, Peer and Owned can be found in the end notes) Earned Paid Peer Owned Most likely to get my attention Most entertaining Most emotionally compelling Most accessible Most informative & reassuring Most truthful & trusted Most used for new product introduction Most likely to get me to purchase a new brand or change my opinion

34. Earning commitment

35. A better customer experience is not enough Owned Incremental increase in importance of a brand’s actions, comparing a Committed to an Involved relationship Q13 (Top 4 Box, “Describes me”.) Behaviors that had the greatest percentage point increase from the Involved to the Committed relationship levels. See Appendix for a full explanation of how the five relationship stages were built. Earned Brand 2016 Global | 35 Makes decisions with customers’ best interests in mind I can always find it on my favorite shopping websites Makes my life significantly better More reasonable prices than its competitors More creative products than its competitors I can always find it at my favorite stores Doing business with it is so convenient & easy More innovative products than its competitors I can always trust what it says and does The quality of its products is far better Lowest incremental impact bottom 10 of 35 attributes From Involved to Committed Smallest Increase Indifferent Interested Involved Invested Committed

36. Deepening the bond requires shared values and action Owned Incremental increase in importance of a brand’s actions, comparing a Committed to an Involved relationship Q13 (Top 4 Box, “Describes me”.) Behaviors that had the greatest percentage point increase from the Involved to the Committed relationship levels. See Appendix for a full explanation of how the five relationship stages were built. Earned Brand 2016 Global | 36 Part of my social media landscape Enhances the bonds I have with my friends Maintains ongoing conversation with me Invites me to play part in its innovation process Significant source of enjoyment in my life There for me at a tough time in my life Helps me express myself It provides a connection platform I get a lot of respect for owning & using it It seems to really understand me Highest incremental impact Top 10 of 35 attributes From Involved to Committed Largest Increase Indifferent Interested Involved Invested Committed

37. Brands falling short on purpose and engagement Relationship dimensions The average strength of each dimension of the brand relationship 44 Embodies unique character 38 Makes its mark 33 Acts with purpose 39 Invites sharing, inspires partnership 34 Tells a memorable story 4235 Listens openly, responds selectively 38 Lowest marks See Appendix for a full explanation of how the Index was built and of the seven dimensions of the consumer-brand relationship. Earned Brand 2016 Global | 37 Builds trust at every touchpoint 42

38. Top brand actions that improve the score for acts with purpose Relationship drivers Have a heritage I can admire Be there for me at really tough times in my life Be a force for good and help make the world a better place Be an interesting part of my social media conversations r = .49 Modeling Q7 “acts with purpose” relationship dimension responses using Q13 “what makes a brand special” items. Within the social sciences, an r= .30 is considered to be a moderate effect size and an r=.50 is considered to be a large effect size. Working in combination, these drivers are even stronger and more significant predictors of higher “acts with purpose” dimension scores than they are alone. See Appendix for a full explanation of how the relationship dimensions were scored and a description of the regression analysis. Earned Brand 2016 Global | 38 Invite me in and allow me to play a part r = .49 r = .47 r = .47 r = .46 r= correlation coefficient.

39. Be an interesting part of my social media conversations r = .46 Be there for me at really tough times in my life r = .42 Invite me in and allow me to play a part r = .45 Invite and facilitate an ongoing conversation with me r = .48 Earned Brand 2016 Global | 39 Relationship drivers Top brand actions that improve the score for listens openly, responds selectively Modeling Q11 “listens openly, responds selectively” relationship dimension responses using Q13 “what makes a brand special” items. Within the social sciences, an r= .30 is considered to be a moderate effect size and an r=.50 is considered to be a large effect size. Working in combination, these drivers are even stronger and more significant predictors of higher “listens openly, responds selectively” dimension scores than they are alone. See Appendix for a full explanation of how the relationship dimensions were scored and a description of the regression analysis. Offer highly personalized and responsive customer service r = .41 r= correlation coefficient.

40. Invite and facilitate an ongoing conversation with me r = .49 Earned Brand 2016 Global | 40 People admire and respect me when I use your brand r = .49 Have a heritage I can admire r = .53 Be there for me at really tough times in my life r = .48 Relationship drivers Top brand actions that improve the score for tells a memorable story Modeling Q9 “tells a memorable story” relationship dimension responses using Q13 “what makes a brand special” items. Within the social sciences, an r= .30 is considered to be a moderate effect size and an r=.50 is considered to be a large effect size. Working in combination, these drivers are even stronger and more significant predictors of higher “tells a memorable story” dimension scores than they are alone. See Appendix for a full explanation of how the relationship dimensions were scored and a description of the regression analysis. Be an interesting part of my social media conversations r = .48 r= correlation coefficient.

41. Earned Brand 2016 Global | 39 When brands get it right Social listening analysis capturing consumer responses to various brand campaigns Actively engage around shared values Strengthen buying behaviors Build deeper relationships I will undoubtedly #OptOutside for #BlackFriday. I love you @REI. —@anonymous, Twitter ‘DIRT IS GOOD’ Su-bloody-perb! And I feel good about Persil without feeling manipulated. —Neil French, YouTube “ “ Source: Social listening verbatims. Thank you PayPal for standing up against ignorance and discrimination. I have been a PayPal customer for more than 15 years and I will continue to use and recommend PayPal. —@anonymous, Facebook “

42. Earned Brand Enables shared action Committed Consumer Buys first, stays loyal, advocates, defends CONSUMER Purchase BRAND Engagement Earned Brand 2016 Global | 42 Committed consumers and the Earned Brand As brands expand their engagement to include shared action, consumers become more committed and go to work for the brand. Committed consumers influence their peers to also take action with and for the brand, expanding the brand’s reach and penetration. Their peer advocacy, loyalty and buying commitment protect the brand against disruption, and give it a license to disrupt. This deeper, more active consumer relationship is the hallmark of the Earned Brand.

43. End Notes Q7. Acts with purpose dimension - The statements below are numbered from 0-5. Please indicate the highest-numbered statement about this brand that is true for you. So, for example, if statement #3 is true for you, but not statements #4 or #5, you should mark statement #3. Dimension is the average of the following responses: “I am unaware if this brand supports any causes or has any social purpose beyond making good products/services,” “Beyond offering a good product or service, this brand also contributes to the greater good in some way, either in how the product/service is made or delivered, or by actively supporting social causes,” “I believe that the brand’s greater purpose or the social causes that it supports are important and worthwhile,” “This brand’s cause or social purpose is something that I share and also support,” “Supporting this brand is one way I actively support a cause I believe in,” “Because of activities and opportunities sponsored or facilitated by this brand, I have become even more actively engaged in the cause or social purpose that this brand supports.” Q9. Tells a memorable story dimension - The statements below are numbered from 0-5. Please indicate the highest-numbered statement about this brand that is true for you. So, for example, if statement #3 is true for you, but not statements #4 or #5, you should mark statement #3. Dimension is the average of the following responses, “I do not have any idea of what this brand stands for or about its heritage,” “This brand has a story about what it stands for and its heritage,” “I admire what the brand stands for and its heritage,” “I can identify with the brand’s story and heritage,” “I am part of the brand’s story. I was there at, or can relate to, key points in its history, or it has played a meaningful role in key parts of my life,” “The brand’s story – what it stands for and where it comes from overlaps with mine. We share a heritage, a future and a set of values.” Q11. Listens openly dimension - The statements below are numbered from 0-5. Please indicate the highest-numbered statement about this brand that is true for you. So, for example, if statement #3 is true for you, but not statements #4 or #5, you should mark statement #3. Dimension is the average of the following responses, “I would not know how to go about reaching out to or interacting with this brand if I wanted to,” “If I had something to say, I know that I could get a message to the people behind this brand,” “This brand often gives me opportunities to engage with it or to give it feedback and input,” “I have communicated with this brand by sending it a message in some way, or by submitting a complaint, suggestion or compliment,” “This brand has responded to my communications in a meaningful way. I feel like we have had significant interactions,” “I have ongoing conversations and interactions with this brand. It is part of my social circle.” Earned Brand 2016 END NOTES | 43

44. End Notes Q13. Still thinking of your favorite brand in this category, what is it about this brand that makes it special to you? Using a nine-point scale that goes from not at all important to extremely important, please indicate how important each of the following was in building the special relationship you have with this brand? “The quality of its products and services are far better than its competitors,” “Its prices are much more reasonable than its competitors,” “Using its products and services makes my life significantly better,” “Every part of doing business with it is so convenient and easy," “The products and services are far more innovative than its competitors," “The products and services are far more creative than its competitors," “The customer service it offers is highly personalized and responsive to my needs," “I greatly admire the charisma and personality of the person who runs or founded the company," “I admire how it is shaking things up and disrupting business as usual," “It is a significant source of humor, entertainment and enjoyment in my life," “It is a significant source of useful information and life help," “It represents, and is part of, a lifestyle that I aspire to," “It has raised my self-esteem and helped me feel better about myself," “I get a lot of respect and admiration for owning and using this brand," “I admire its heritage. I respect how it overcame challenges to achieve success," “It was there for me at a really tough time in my life," “It helps me express to the world something important about myself," “It seems to really understand me as a person and what is important to me in life and not just when it comes to the products it makes," “It seems to really care about me as a person. It makes me feel special," “It invites me in. It allows me to play a part in its innovation, creative or product testing processes," “It maintains an ongoing conversation with me. It invites and facilitates our interactions," “It enhances the bonds I have with my friends. It is a point of mutual connection among us," “It provides a platform or venue through which I can reach out to and connect with a community of people," “It is a part of my social media landscape. It is where I am and an interesting part of the conversations I am having," “I can always trust what it says and does," “I know that it always makes its business decisions with the best interests of its customers in mind," “The values and morals it stands for match my own," “It is a force for good in the world. It is helping to make the world a better place," “Cares about the impact of its products /services and how it does business on me and my family," “Cares about the impact of its products /services and how it does business in my community," “This brand encourages me and others to review its products and services," “Buying the brand guarantees me that I will always have the most up- to-date features or technology," “It allows me to customize or personalize its products and services so they are exactly the way I want them," “I can always find its products on my favorite shopping websites," and “I can always find its products at my favorite stores.” Earned Brand 2016 END NOTES | 44

45. End Notes Q14. Continuing to think about your favorite brand, and in particular, what your relationship with that brand looks like, how well do each of the following describe how you relate to and feel about that brand? (Top 4 Box, Describes Me) “Buy first and Stay loyal” is the average of, “I am one of the first to try the new products/services of this brand when they come out," “I am happy to pay more for this brand’s products/ services," “When I buy/use products/services in this category, it has to be this brand," “I will continue to buy this product even if a competitive brand is getting better reviews," “I will continue to buy this brand even if a competing brand comes along that is more innovative or technologically advanced," “I will continue to buy this brand even if a competitive brand starts using more environmentally friendly business and production processes," “I will continue to buy this brand even if a competitive brand started treating its workers better by giving them higher wages and better benefits," and “I am happy to share my personal data with this brand.” “Advocate and Defend” is the average of, “I always recommend this brand if someone asks," “I advocate for this brand even when I am not directly asked for advice," “I like/rate what the brand is saying in social media," “I participate in the creation of the brand’s media content," “I defend this brand if I ever hear someone criticizing it," and “I will continue to buy/use this brand even if something goes wrong with its latest products/services.” Q15. Continuing to think about your favorite brand, which of the following have you done in the past 90 days? Please select all that apply. Paid is a net of “Saw an ad for the brand online," “Saw an ad for the brand on TV," “Saw an ad for the brand on my phone," and “Saw an ad for the brand on social media.” Peer is a net of “Liked or recommended it online on social media," “Shared content (or a link to the content) about the brand with others," “Posted a positive review of the brand or its products," “I saw content about the brand on social media," “Talked to friends and family about the brand," “Read reviews about the brand," and “Saw something about it on a social media site.” Owned is a net of “Visited its web site," “Followed it on social media," “Attended an event or participated in a promotion that it sponsored," “Read the brand’s newsletter or blog," “Watched a video posted by the brand," and “Saw sponsored content for the brand.” Earned Brand 2016 END NOTES | 45

46. End Notes Q17. Please indicate how much you agree or disagree with the following statements. (Top 4 Box, Agree) “In many cases, brands can do more to solve social ills than governments” and “Making the world a better place should be part of a brand’s day-to-day business activities and DNA, and not just something it does on the side or allocates to a small team within the company.” Q20. And if a brand did not fulfil the obligations listed below, would that stop you from buying that particular brand? (Net of yes for “address problems faced by its customers, such as discrimination or other social justice or economic issues," “Address problems faced by the communities in which the brand operates or has offices, such as poverty, lack of safe community spaces, under-funded arts programs or under-performing schools," and “Addressing problems that are important and affect society at large, but are not directly related to the brand’s business or business practices”). Q28 There are different sources of information about brands and products. For each of the following statements, please select the one information source that it describes best. This is the information source about brands and products that …(Earned=News or articles posted, published or broadcast by third parties; Paid=Brands or companies talking about themselves in advertising or other promotions; Peer=Friends/Family/Like-minded strangers; Owned=Brands or companies talking about themselves on their web sites, blogs or social media) week, or Daily); “Traditional Media” call out is a net of, “Television,” “News articles,” “Magazines,” “The radio,” and “Blogs.” Q31. When you want information about a brand's products or services, what sources of information do you use? (Net of “Customers of the brand," “People like yourself," and “Your friends and family.”) (Top 4 Box, Source Rely on Most). Q32. 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? Please select all that apply. (Net of “They help me decide which option is the best," “They give me confidence that I am making the right choices," “They encourage to actually go and make the purchase once I have made a product choice," “They help me find the best price on the product I want," and “They help me figure out where to buy the brand or product”). Q33. Ad blockers are programs that remove different kinds of advertising from a Web user's experience online. Do you currently use any ad blockers? (Net of “Never heard of it before today but I am curious to know more and would consider using Ad blockers in the future," “Heard of Ad blockers and would consider using in the future," and “I am currently using Ad blockers.”) Earned Brand 2016 END NOTES | 46

47. EarnedBrand2016 TechnicalAppendix 1. Methodology 2. The sample 3. How was the Edelman Brand Relationship Index built? • How did consumers evaluate the seven dimensions of the relationship? • How were the five levels of brand-consumer relationship determined? • How reliable is the Edelman Brand Relationship Index? • How did we identify the drivers that predict higher scores on each dimension? 4. About the research team

48. Earned Brand 2016 Methodology A Global Survey Timing April 7 – April 25, 2016 13 countries Online survey in Australia, Brazil, Canada, China, France, Germany, India, Japan, Mexico, The Netherlands, Singapore, the U.K., and U.S. 13,000 respondents 1,000 per country, nationally representative of age, gender, and region based on most recent country census data. Earned Brand 2016 TECHNICAL APPENDIX | 48 Social listening In China, Germany, India, the U.K., and U.S., we listened to consumer conversations on social media to assess the impact of 15 recent cause-related brand campaigns or actions.

49. Earned Brand 2016 The sample Country Internet Penetration Sample Size Languages Quota Parameters Australia 85% 1000 English Gender, Age & Region Brazil 66% 1000 Portuguese Gender, Age & Region Canada 88% 1000 English & Localized French Gender, Age & Region China 52% 1000 Simplified Chinese (Mandarin) Gender, Age & Region France 86% 1000 French Gender, Age & Region Germany 88% 1000 German Gender, Age & Region India 35% 1000 English Gender, Age & Region Japan 91% 1000 Japanese Gender, Age & Region Mexico 45% 1000 Localized Spanish Gender, Age & Region Netherlands 94% 1000 Dutch Gender, Age & Region Singapore 82% 1000 English & Simplified Chinese Gender, Age & Region U.K. 93% 1000 English Gender, Age, Region & Ethnicity U.S. 88% 1000 English Gender, Age, Region & Ethnicity Earned Brand is an online survey. In developed countries, a nationally representative online sample closely mirrors the general population. In countries with lower levels of Internet penetration, a nationally representative online sample will be more affluent, educated, and urban than the general population. Earned Brand 2016 TECHNICAL APPENDIX | 49 13-country global data margin of error: +/-0.9% (N=13,000), global index scores +/- 0.4 points (N=13,000). Country-specific data margin of error: +/- 3.1% ( N=1,000), country index scores +/- 1.6 points (N = 1,000). Category specific data margin of error: +/- 2.7% (N=1,286-1,546), category index scores +/- 1.5 points (N=1,286-1,546), Millennial specific data margin of error: +/- 1.6% (N=4,050), millennial index scores +/- 0.8 points (N=4,050).

50. How was the Edelman Brand Relationship Index built? 1.Each respondent rated their favorite brand within three categories given to them at random from among the 18 categories examined in this research. The only stipulation placed on their brand choice was that the brand had to be one they currently own, use or make purchases from it. Earned Brand 2016 TECHNICAL APPENDIX | 50 Automobile Beer, wine, and spirits Credit cards Fashion Financial services Food and beverage Grocery stores Home energy management Household products Luxury goods Mobile carriers OTC medicines Personal care Prescription medicines Retailers Social media Travel Utilities Product categories included in the study What is your favorite brand in this category that you currently buy or use?

51. 1 Embodies unique character 2 Makes its mark 7 Acts with purpose 3 Tells a memorable story 6 Builds trust at every touchpoint 4 Listens openly, responds selectively 5 Invites sharing, inspires partnership 2.Respondents gave each of the brands seven ratings, from zero to five, depending on how deeply involved they were with the brand along each of the seven relationship dimensions. How strong is your relationship with that brand within each of these seven dimensions? Earned Brand 2016 TECHNICAL APPENDIX | 51 How was the Edelman Brand Relationship Index built?

52. Indifferent Interested Involved Invested Committed Embodies unique character Not much different from its competitors Different from many other products/services in the category Offers unique products/services Bigger than the products/services it delivers--has its own unique personality Embodies an idea or value or lifestyle I can relate to; helps me express something Makes its mark I buy this brand out of habit. I have no real attachment to or affection for it I go out of my way to buy this brand, even if it is not the cheapest or most convenient The only brand I will buy. If it is not available, I will do without until I can find it again My relationship with this brand goes beyond liking it as a product or service A positive force in my life. This brand represents a lifestyle or way of life that defines me. Tells a memorable story I do not have any idea of what this brand stands for or about its heritage This brand has a story about what it stands for and its heritage I admire what the brand stands for and its heritage I can identify with the brand’s story and heritage I am part of the brand’s story; we share a heritage, a future, a set of values Listens openly, responds selectively I would not know how to go about reaching out to or interacting with this brand If I had something to say, I know I could get a message to the people behind this brand This brand often gives me opportunities to engage with it or to give it feedback and input I have communicated with this brand in some way I have ongoing interactions with this brand. It is part of my social circle Invites sharing, inspires partnership Unware of what this brand is doing or saying I remember seeing some advertising/promotions, and sometimes see things about it in the news or online I notice and pay attention to what this brand is saying and doing when I see its ads, other content, or news about the brand I am likely to forward, share or repost news/online content about this brand, or share information about my experiences with it Has become part of my social life. I am likely to participate in promotions, engage with its content online, attend its events Builds trust at every touchpoint I do not really trust this brand I trust this brand to make good products/services at a fair price I trust that this brand makes business decisions with interests of its customers top of mind Makes all of its business decisions with the best interests of the broader society top of mind I would stick by and defend this brand even if I was disappointed, I have faith it will correct mistakes Acts with purpose Unaware if it supports any causes or has any social purpose beyond making good products/services Contributes to the greater good in some way, in how the product/service is made delivered, or by actively supporting social causes The brand’s greater purpose or the social causes that it supports are important and worthwhile This brand’s cause or social purpose is something that I share and also support Supporting this brand is one way I support a cause I believe in; because of this brand I have become even more actively engaged in the cause Building the Index The 7 relationship dimensions Earned Brand 2016 TECHNICAL APPENDIX | 52

53. How was the Edelman Brand Relationship Index score built? 3.The Brand Relationship Index was calculated by taking the average of the seven dimension scores and multiplying by twenty to convert the index to a 100 point scale. The 2016 Global Brand Relationship score of 38 represents the average Brand Relationship Index across the 39,000 (13,000 X 3) consumer-brand relationships analyzed. 0 - 100 ((Average of seven dimension scores) x 20) The 2016 Edelman Brand Relationship Index Earned Brand 2016 TECHNICAL APPENDIX | 53

54. Building the Index How did we define the relationship levels? • A Brand Relationship Index score can vary from zero to 100. In working with the scale, we identified five unique relationship levels. The cut-points that define each level are displayed below. • These relationship levels were empirically determined based on two criteria. The first was a correspondence between relationship level as determined by the Brand Relationship Index and respondents’ self-described level of attachment to a given brand. The second was how distinct the levels were when profiled against key marketplace behaviors of general interest to brands. • The resulting relationship levels and cut-points represent an optimized result that captures both respondents’ explicitly stated level of relationship with a brand and their implicit level of relationship as defined by their willingness to buy that brand first as well as to advocate for and defend it. Strength of relationship with the favorite brand they buy in a category Earned Brand 2016 TECHNICAL APPENDIX | 54

55. Building the Index How reliable is the Edelman Brand Relationship Index? Earned Brand 2016 TECHNICAL APPENDIX | 55 Alpha Reliability analyses were performed globally and within each of the 13 countries. Results indicated that the scale was reliable in every market and that all seven dimensions tap into different aspects of the same underlying construct – the strength of the bond between a brand and a consumer. Note: Alpha levels above .6 are considered to indicate good internal reliability. Country Alpha Reliability Global Average .91 Australia .91 Brazil .90 Canada .91 China .91 France .92 Germany .91 India .90 Japan .87 Mexico .90 Netherlands .89 Singapore .90 U.K. .91 U.S. .92

56. How did we identify the drivers that predict higher scores on each dimension? Within this report, we highlight the top five most powerful and statistically significant drivers of each relationship dimension. A consumer’s relationship with a brand overall and within each of the seven dimensions is fluid. It can evolve over time. Often, the deepening of one’s relationship with a brand is associated with the emerging appreciation of certain brand characteristics that foster and support a consumer’s greater investment in that brand. By highlighting, building and deepening their commitment to these characteristics, brands have the power to move people along the relationship continuum. In order to identify the brand attributes that are the most powerful predictors of higher relationship scores, we performed a series of stepwise multiple regressions focused on those things that consumers said made their favorite brand in a category special to them. The resulting models revealed which of those special relationship builders were the most strongly related to how respondents characterized their relationship with that brand along each of the seven relationship dimensions. The top five drivers shown in this report are ranked based on their beta values. List of 35 attributes that potentially make a brand special to its customers Step 1: Pick a characteristic and put it into a prediction model. Does this characteristic make the model stronger? If yes, then keep it in. If not, then remove it from the model. Step 2: Repeat step one. Step 3: Continue this process until all 35 characteristics have been tested. Earned Brand 2016 TECHNICAL APPENDIX | 56 The results: The top drivers that predict an improve- ment in each dimension score Understanding stepwise multiple regressions

57. Edelman Intelligence is a world class research and analytics consultancy. It works to understand the mechanics of human attitudes and behavior, organize and analyze content and conversations, and uncover connections and patterns in complex data sets. The team is made up of experts from different backgrounds with different skillsets. This allows Edelman Intelligence to approach challenges in a unique way – taking different perspectives to find the best solutions to help drive growth for its clients. The research team Edelman Intelligence Antoine Harary Antoine is the global MD of Edelman Intelligence. With his team of over 150 intelligence experts, he manages international research and consulting projects across more than 50 countries. Over the last four years his work has been recognized by two major awards from the Communications Industry: the 2011 EMEA Sabre Award for best public affairs campaign and the 2012 European Excellence award for PR measurement. Before joining Edelman, Antoine worked in the automotive industry (PSA PEUGEOT CITROEN) as a senior research manager. Antoine holds two Masters Degrees: International PR from CELSA/Sorbonne and Political Sciences from Sciences Po Aix. Cécile Nathan-Tilloy Cécile is the MD of Edelman Intelligence London. As the primary research lead for Europe, she oversees research & analytics for Edelman’s top 18 global clients. Cécile started her career in advertising at TBWA and BETC before joining Millward Brown and Truth Consulting. After completing Master degrees in Sociology & Anthropology at Sorbonne University and in Political Sciences at Sciences Po Paris, Cecile graduated from HEC Business School in Intelligence Marketing. David M. Bersoff, Ph.D. David is in charge of Edelman’s global thought leadership research. Before joining Edelman Intelligence, Dr. Bersoff served as The Futures Company’s Chief Insights Officer. In that role, he drove the research, data analysis, IP creation and product development strategy for all of their syndicated consumer insights offers, including the Yankelovich MONITOR. David holds a Ph.D. in social and cross-cultural psychology from Yale University. Earned Brand 2016 TECHNICAL APPENDIX | 57