innovation and the earned brand study dutch results

Innovation and the

Earned Brand

Consumers are embracing innovation

at a faster pace than ever before…

The Earned Brand | Edelman 2015 |

And yet they feel the pace of business

innovation is too fast by a 2-to-1 margin

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, 27-country global total. (2015 Edelman Trust Barometer)

The pace of development and

change in business and industry today is…

29%

TOO FAST


JUST RIGHT

19%

51%

TOO SLOW

28%

TOO SLOW

JUST RIGHT

24%

TOO FAST

44%


And what can the

rest of us learn

from this?

Why the contradiction?

How are today’s

fastest-growing

brands convincing

consumers to accept

the risks that come

with innovation?

What are

consumers’

real feelings

about innovation?


What is innovation?

A re-imagination of categories,

products, services, operations,

models, design, etc. that create

more value, for the brand and

for consumers

The Earned Brand Methodology

Timing

April – May 2015

Quantitative Online Survey

10 countries: U.S., Mexico,

Brazil, France, Germany, U.K.,

China, Japan, India, Australia

10,000 respondents, nationally

representative of age, gender,

and region based on most

recent country census data

Behavioral Focus Groups

16 millennials in New York and

London

Mobile Diaries

25 millennials, with them on their

mobiles, for 2 weeks, in Brazil,

U.K., India, China and the U.S.


A global survey of consumer

attitudes toward brand innovation

Timing

November 2015

Quantitative Online Survey

Netherlands

500 respondents, nationally

representative of age, gender,

and region based on most

recent country census data

A survey of consumer attitudes toward

brand innovation in the Netherlands


The Earned Brand

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 reason for being – one that defines not just the communications, but how the brands behave online, off, and in all contexts.

An expressed set of values informs what products are made, what language is used, how customers are treated, and ultimately the legacy the brand leaves in the communities it serves.

Earned Brands empower conversations among peers.


Innovation and the Earned Brand

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.”

Messaging alone

doesn’t work.

It’s about how

your brand

behaves.

1 2 3 4 5


People believe in the promise of innovation.

Insight 1

Q6a: 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). Q6b: 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)

Percent who agreed with each statement:

The Netherlands sees the value of innovation

70%

innovation opens

the human spirit

innovation is essential

and it’s helping us

to progress

66%


Millennials:

66%

Millennials:

69%

Global:

92%

Global:

77%

Q4. Where do you think the next big thing will come from?

The next big thing

will come from…


BUSINESS

10%

INDIVIDUALS/PEOPLE

LIKE ME

64%

25%

ACADEMICS/UNIVERSITIES

And they believe that business has

the biggest role to find the next big thing

36%79% 30%

Global Figures:

They believe that brand

innovation should have

societal impact

Q7b. What do you think the role of innovation is for brands today and in the future? (in the future)

to improve society

to push our thinking as a society

to let us be one step ahead of other countries

38%

28%

19%


agree that brand innovation

needs to impact society(one or more of the following)

in6 10Global:

9 in 10

Millennials: 17%Millennials: 29%

Millennials: 39%

Millennials:

6 in 10

Global: 66%Global: 63%

Global: 69%

Improving the fairness of business practices(33% General Population, 27% Millennials)

The Earned Brand | Edelman 2015 | Q5: If it was up to you, what would you have brands focus on when coming up with the next big thing? Please rank your top 3 in order.

And expect brand innovation to

provide global improvement along

with product enhancement

1The product or service itself(34% General Population, 36% Millennials)

2 3

Top three areas brands should focus on when innovating:

Improving the world at large(31% General Population, 33% Millennials)

Failure to demonstrate the

wider purpose of innovation

can impact adoption

Q12: Please complete the following statement: ”I am sceptical about a new product or innovation when…”

the benefits to me are unclear

it appears to be innovation just for the sake of it

it does not serve a greater purpose

57%

33%

30%


are sceptical of innovations

that lack purpose(one or more of the following)

in7 10Millennials:

6 in 10

Millennials: 45%

Millennials: 24%

Millennials: 28%

56%

40%

22%

5%9%

4%

22%

11%

47%

23%26%

21%

Technology Mobile Health care Government Education Law

The Netherlands wants to see innovation in governance

and social services, rather than mobile and tech

Q8: 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? Q9: … what industries do you want to see innovation in TOMORROW?

Percent who say they see innovation coming from each industry sector today, and who want to see it from each sector tomorrow:

INNOVATION GAP

1718


25

17

INNOVATION TODAY INNOVATION TOMORROW

WANT LESS TOMORROW WANT MORE TOMORROW

66%

70%

65%

69%67%

61%

65% 65%67%

62%65%

34%

Globally, consumers question your motives

Q14. What do you think the role of innovation is for brands today and in the future? (today)

Q7a. What do you think the role of innovation is for brands today and in the future? (today)

Percent who say the role of innovation for brands today is “to make more money for the company”:


consumers believe brands are innovating to make more money for the company

in2 3

Millennials:

36%

43%41%

35%

26%25%

24%

14%

42%40%

38%

30%

25%

31%

18%

To offer me a productor service that is better

/ easier to use (i.e.more streamlined)

To constantly improvesociety

To offer me somethingthat better fits my

needs

To push our thinkingas a society

To let us be one stepahead of other

countries

To be a more famousand talked-about

brand

To help me in ways I didn’t know I needed

General Population Millennials

Though the Netherlands is more optimistic, and sees

both product and societal improvement as key drivers of

innovation today

Q7a. What do you think the role of innovation is for brands today and in the future? (today)



Insight 2

Consumer acceptance of brand innovation cannot be bought.

It must be earned.

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.

say they will not buy

because of their concerns

Percent who feel that each is happening in the world today, and percent

who say their concerns makes them not want to buy something:


81%

Privacy

issues

Being

always onSecurity Environment

(Global: 87%)

2 in 3 have privacy concernsPrivacy concerns are especially strong in

Germany, the U.K., the U.S. and Australia.

66%

74%

61%58% 56%

76%

55%

66% 64%

71%75%

43%

Q22/Q10. Thinking about the below, please indicate which of the following you feel is happening in the world today.

Percent who feel that each is happening in the world today –privacy issues:

66%


Privacy issues

“I don’t care if they know I go to the

grocery store—but I don’t want them to

sell information to that grocery store.”

Nick, U.S.

Source: Mobile Diaries

Millennials:

48%

1 in 2 concerned about having to be always onGermany and Brazil are most concerned; Japan and China are less so.

50%54%

65%

36%

53%

63%

41%

29%

57%

46%

53%

33%


Percent who feel that each is happening in the world today –

having to be always on:


50%

Beingalways on

Millennials:

37%

1 in 2 have security concernsSecurity concerns are highest in Japan and the

U.S., and less of an issue in China.

54%

69%

51%

33%

49%44% 44%

75%

41%

64%

71%

40%



your security being compromised:


54%

Security

“Some back door issues may leak

personal information, including

personal banking details.”

Yao, China


Millennials:

32%

And the majority have concerns about the impact on the environmentEnvironmental concerns are global, but strongest in Europe and Latin America.

58%61% 62%

52%

62%66%

54% 52%

62%

54%51%

45%



impact on the environment:


58%

Impact onenvironment

“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


Millennials:

45%


Insight 3

While the promise of

innovation inspires,

people first need

to be reassured.

Globally, 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”


people want to be

REASSURED

in2 3

people want to be

INSPIRED

in1 3

While in the Netherlands,

inspiration plays a larger role,

particularly with millennials

GeneralPopulation

Millennials

54%

want to be

REASSURED want to be

INSPIRED

39%

want to be

REASSURED

48%

want to be

INSPIRED

48%

Dutch millennials gain inspiration from brands they see

as innovative, regardless of sector

The Earned Brand | Edelman 2015 | Q2: Which of the following brands inspire you?

25%

21% 20%20% 20%

26%

19%

35%

18%

21%

Top 5 inspirational brands from prompted list


“Apple - Steve Jobs heeft

dit merk tot een geweldig

topproduct gebracht. Het

straalt innovatie en

schoonheid uit.”

Source: Q1. Which brands

inspire you today? Any why?

“Airbnb verhuurt

appartementen zonder zelf

ook maar 1 appartement

te bezitten.”

Source: Q1. Which brands

inspire you today? Any why?

And see Dutch innovation coming from a wide variety of

businesses, including those outside traditionally

innovative industries such as tech

The Earned Brand | Edelman 2015 | Q3: In your opinion, which brand or company from the Netherlands today symbolises an innovative business?

[UNPROMPTED RESPONSE]

Tech Energy

Banking &

Finance Health Retail

Consumer

Goods Beverage


Insight 4

“I rely on my peers to reassure me. Because their experience is my evidence.”

10%

13%

18%

18%

22%

35%

47%

50%

They give me a sense community

They excite me

They tell me how to use things in betterways

They make me trust the brand more

They push me to try new things

They help me overcome concerns

They warn me about the risks

They help me make decisions

In the Netherlands, peers have a significant impact on purchase decision making

Q19: 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? // 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?

The impact of online/offline conversations about

brands with friends and other people like me:

Build inspiration

Push consideration

Moment

of

Truth


Millennials Global

6% 16%

18% 20%

17% 33%

20% 29%

28% 25%

38% 37%

42% 45%

46% 44%

The channels consumers rely on to be reassured are peer-to-peer, rather than brand-to-consumer

Mobile DiariesWhen millennials want to learn about brand

innovation, their go-to channels are peer-to-

peer: Skype, Whatsapp, Facebook and SMS.

Behavioral Focus GroupsBiometric testing showed that peer-to-peer

channels (Twitter, blog posts, word of mouth)

had a greater impact, by a 6 to 1 margin, on

changing opinions about the risks of new

innovations than advertisements.


Mobile diaries with 25 millennials in 5 countries. Behavioral focus groups with 8 millennials in New

York and 8 millennials in London.

Dutch consumers are heavily involved in peer-to-peer

conversations about brands


Q14: Which brands have you talked to your friends and family about in the past few weeks? What about

these brands were you discussing (e.g. new products, recent news, etc.)? // Q15: Have you recently talked

to your friends or family about any of the following brands?

Q16: Which, if any, of the following social networks do you use to share

information about brands with your friends and family?

Some of the brands they’re talking

about include…

16%

11%

10%

56%

46%

General

Population Millennials 35-54 55+

6%

3%

22%

13%

26%

64%

64%

11%

12%

14%

11%

5%

57%

45%

5%

1%

14%

9%

2%

49%

35%

4%

0%

NET Any 70% 78% 69% 61%

use social networks

to talk about brands

with friends & family7 in10

Millennials: 8 in 10

Brand innovators win if they power peer conversations

Percent who agree with each statement:

“Our unique asset is

our host community.”

Nathan Blecharczyk,

founder of AirBnB

“Our next innovation is

introducing a peer to peer

platform so that our private

car owners in Europe can

share their cars.”

Tina Muller, CMO, Opel

Q18. How much do you agree or disagree with the following statements?


58%

For me to trust a brand, I

need to know if other

people are happy with it

first

I trust a brand more if I

find it easy to review its

products and services

54%

Millennials: 46%

Millennials: 57%

Global: 67%

Global: 60%


Insight 5

Messaging alone

doesn’t work.

It’s about how your

brand behaves.

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:


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

Traditional methods for introducing brand innovations

are less effective for Dutch millennials; a new strategy is

needed

The Earned Brand | Edelman 2015 | Q13: Which, if any, of the following could a brand do to make you more likely to buy their latest new product or innovation?

60%

35%

34%

24%

26%

6%

23%

49%

28%

35%

28%

29%

9%

27%

Give me a sample or allow me to try it before I decide to buy

Provide a live demonstration of the product in stores

Offer me a temporary discount

Offer me vouchers / discounts at other companies I use

Have bloggers/vloggers I trust review the product before itcomes out

Tell me about my friends who have already purchased or areusing it

Tell me about the upgrades / new additions to this version ofthe product

Actions to increase new innovation purchase likelihood


EXPERIENCE

INCENTIVES

VALIDATION

EDUCATION

What undecided consumers need from brands when it comes to innovation

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


Statistical analysis of consumer groupings based on their

attitudes to brand innovation, and their risk concerns.

Source: mobile diaries, qualitative

groups and quantitative segmentation

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


Brand Behaviors

Source: mobile diaries, qualitative

groups and quantitative segmentation

Thank you.


innovation and the earned brand study dutch results

Data & Analytics