Public Perceptions of Co-Operatives and Credit Unions Research Study

Presented to:Nova Scotia Co-Operative Council

Presented by:Diane Kelderman

2

Methodology

Adults in Nova Scotia 18 years of age and older were interviewed. Interviewing took place from October 17 to October 27, 2008. 312 interviews have been completed to date, with a margin of error of ± 5.5 percentage points, 19 in 20 times. Data has been weighted to reflect the true distribution of Nova Scotia adults, by region, age, and gender.

3

Importance of Co-Operative and Credit Union Sector

Most Nova Scotia residents regard the Co-Op/ Credit Union sector as important – A strong “starting point” for go-forward actions.

20%

57%

12%

2%

8%

0%

20%

40%

60%

80%

100%

Critically important Important but not critical

Not very important Not at all important Don't know/No answer

Q.3 (n=312)

Importance of Co-Operative and Credit Union Sector to Nova Scotia Economy

% Important = 77%

4

Overall Opinion of Co-Operatives

Almost everyone has a favourable opinion of Co-Ops, meaning there are few embedded negative biases to overcome, going forward.

20%

67%

5%1%

7%

0%

20%

40%

60%

80%

100%

Completely favourable

Mostly favourable Mostly unfavourable

Completely unfavourable

Don't know/No answer

Q.5 (n=312)

Overall Opinion of Co-Operatives

% Favourable = 87%

5

Level of Agreement with the Following Statements

Public perceptions and opinions regarding Co-Ops are favourable. There is a lack of awareness, however, concerning Co-Ops’ “for profit” status.

48%

42%

53%

16%

49%

50%

38%

37%

0% 20% 40% 60% 80% 100%

Co-Operatives are credible organizations

Co-Operatives keep money in local communities

Co-Operatives are member-owned

Co-Operatives are for-profit organizations

Completely agree Mostly agree

Q.7a-d (n=312)

Level of Agreement with the Following Statements

6

Co-Operatives in Nova Scotia Are Equipped

The public perceives Co-Ops as better suited for some sectors ahead of others, in part due to lack of strong opinions/ awareness considerations

26%

24%

39%

57%

32%

36%

32%

29%

28%

35%

12%

14%

11%

2%

8%

26%

29%

21%

14%

25%

0% 20% 40% 60% 80% 100%

Renewable energy

Health care

Seniors' housing

Farming and food production

Forestry

Top 4 Box (7-10) Middle 3 Box (4-6) Bottom 3 Box (1-3) Don't know/No answer

Q.11a-e (n=312)

Extent to Which Co-Operatives in Nova Scotia Are Equipped to Meet the Following

7

Comparison of Co-Operatives to Non Co-Operatives

The “brand attributes” of Co-Ops are quite strong and favourable. Co-Ops are in a position of strength, particularly regarding community commitment and customer service. These factors can be leveraged in future initiatives.

38%

24%

42%

54%

31%

55%

56%

76%

41%

38%

44%

30%

37%

31%

30%

16%

14%

29%

6%

10%

22%

2%

3%

2%

0% 20% 40% 60% 80% 100%

The price of goods and services

The range of variety of goods and services available for sale

The quality of goods and services

Overall reputation

Stability

Attitude of customer service representatives

The feeling that you are a valued customer

Care and commitment to local communities

Better Same Worse

Q.12a-h (n=312)

Comparison of Co-Operatives to Non Co-Operatives Retail Organizations In Terms of the Following

8

Familiarity with Co-Operatives in Nova Scotia

Co-Ops have room to improve in terms of public communications and awareness

26%

38%

36%

0%

20%

40%

60%

80%

100%

Familiarity

Middle 3 Box (4-6)

Top 4 Box (7-10)

Q.13 (n=312)

Familiarity with Co-Operatives in Nova Scotia

Bottom 3 Box (1-3)

Q.13 – Using a scale from “1” to “10” where “1” means “not at all” and “10” means “a great deal”, how familiar would you say you are with co-operatives in Nova Scotia?

9

Currently a Member of Co-Operative or Co-Op

One-in-four Nova Scotia residents say they are a Co-Op member.

Yes, 27%

No, 72%

Don't know/No answer, 1%

Q.14 (n=312)

Currently a Member of Co-Operative or Co-Op

10

Overall Opinion of Credit Unions

As with Co-Ops, so with Credit Unions: very favourable public perceptions are evident.

24%

62%

6%1%

7%

0%

20%

40%

60%

80%

100%

Completely favourable

Mostly favourable Mostly unfavourable

Completely unfavourable

Don't know/No answer

Q.16 (n=312)

Overall Opinion of Credit Unions

% Favourable = 85%

11

Importance of Factors When Choosing Financial Institution

The graph displays some features that members of the public value from a financial institution.

76%

69%

67%

56%

53%

52%

52%

50%

49%

44%

43%

0% 20% 40% 60% 80% 100%

Stability

The knowledge level of customer service representatives

Attitude of customer service representatives

Competitiveness of savings and investment rates

The feeling that you are a valued customer

Overall reputation

Access to ATMs

The cost of service charges

Having a range of financial products and services

Care and commitment to local communities

The location of the branches

Q.21a-f (n=312)

Importance of the Following Factors When Choosing a Financial Institution

(% Critically important)

12

Perceptions of Credit Unions

As with Co-Ops, it is evident that Credit Unions have a strong “brand” in terms of community care and customer service considerations.

62%

46%

41%

39%

27%

26%

27%

37%

40%

43%

48%

39%

3%

3%

13%

2%

14%

9%

0% 20% 40% 60% 80% 100%

Care and commitment to local communities

The feeling that you are a valued customer

Overall reputation

Attitude of customer service representatives

Stability

The cost of service charges

Better Same Worse

Q.22a-f (n=312)

Perceptions of Credit Unions Compared to Other Financial Institutions

13

Perceptions of Credit Unions, Con’t

Credit Unions score relatively weakly in terms of the access to ATMs and the range of financial products and services available.

23%

22%

21%

14%

11%

45%

55%

37%

55%

36%

13%

4%

33%

14%

39%

0% 20% 40% 60% 80% 100%

Competitiveness of savings and investment rates

The knowledge level of customer service representatives

The location of the branches

Having a range of financial products and services

Access to ATMs

Better Same Worse

Q.22g-k (n=312)

Perceptions of Credit Unions Compared to Other Financial Institutions

14

Likelihood of Choosing Credit Union

Given that banking customers are known to be generally loyal to their financial institution, there is nonetheless some opportunity for growth of Credit Unions’ market share.

12%

33%

42%

22%

2%0%

20%

40%

60%

80%

100%

Very likely Somewhat likely Not very likely Not at all likely Don't know/No answer

Q.23 (n=223)

Likelihood of Choosing a Credit Union in the Future for Some or All of Your Financial Services Needs

% Likely = 35%

15

Agreement about Credit Unions

Here again, there is some confusion regarding Credit Unions’ for-profit status.

50%

46%

39%

55%

19%

46%

41%

52%

38%

42%

0% 20% 40% 60% 80% 100%

Credit unions are credible organizations

Credit unions are a viable alternative to banks and other financial institutions

Credit unions keep money in local communities

Credit unions are member-owned

Credit unions are for-profit organizations

Completely agree Mostly agree

Q.26a-e (n=312)

Level of Agreement with the Following Statements

16

Familiarity with Credit Unions in Nova Scotia

As with Co-Ops, so too are there communications opportunities for Credit Unions in Nova Scotia

33%

32%

34%

0%

20%

40%

60%

80%

100%

Familiarity

Middle 3 Box (4-6)

Top 4 Box (7-10)

Q.28 (n=312)

Bottom 3 Box (1-3)

Familiarity with Credit Unions in Nova Scotia

Q.28 – Using a scale from “1” to “10” where “1” means “not at all” and “10” means “a great deal”, how familiar would you say you are with credit unions in Nova Scotia?

17

Awareness of Credit Unions and Co-Operatives

Virtually everyone already is aware that Credit Unions and Co-Ops operate in Nova Scotia

98%94%

0%

20%

40%

60%

80%

100%

Credit Unions Co-Operatives or Co-Ops

Q.30a, b (n=312)

Awareness of the Following Operating in Nova Scotia(% Saying “Yes”)

18

Questions?