south africa … · south africa were measured via an online survey among a ......

National Pulse2017 Report

South Africa

http://www.reputationhouse.co.za/

2

Table of Contents

Introduction Section 1 4

Country resultsSection 2 10

DemographicsAppendix 1 35

MethodologyAppendix 2 37

2

3

Introduction

About the study. The RepTrak® model.

Section 1

4

About the Study

What follows are the results of the RepTrak® Pulse 2017

reputation study conducted in South Africa by the Reputation

Institute and the Reputation House.

The reputations of the biggest and most visible companies in

South Africa were measured via an online survey among a

representative sample of the general public in South Africa.

Data collection took place in February and March, 2017.

Contact information

For more information about the study please contact:

[email protected]

4


mailto:[email protected]

5

The RepTrak® Model

Reputation Institute’s generic model for reputation is structured

around four core themes, seven reputation dimensions and 23

reputation attributes. Together, these elements explain a

company’s reputation.

1 - Reputation

RepTrak® Pulse is the core of a company’s reputation and

shows how strong the emotional bond is between the company

and the public.

2 – Dimensions and attributes

The RepTrak® model consists of seven operational dimensions

and 23 attributes that explain the reputation profile.

3 - Drivers

The individual attributes mean different things to people and are

perceived differently in terms of weighted importance.

Analyses identify areas that are most important for strengthening

a company’s reputation.

Drivers can be at dimension and attribute level and show how

the company gains value for money in its communication.

The RepTrak® Model Explains Reputation

1

2

3

5

6

What is the relationship between RepTrak® Pulse

and the 7 reputation dimensions?

RepTrak® Pulse measures the overall reputation

based on people's immediate emotional perception

of the company. In contrast, the 7 reputation

dimensions examine people’s rational perception of

corporate reputation based on specific and detailed

statements.

RepTrak® Pulse score is not necessarily always

equal to the average of the 7 reputation dimensions.

People’s emotional perception may be influenced by

an overall positive attitude to the company, which is

not necessarily rewarded by a proper evaluation of

the respective company's products, innovation,

workplace, governance, citizenship, leadership or

performance.

RepTrak® - Rational vs. Emotional

Emotional Rational

explanation of the emotional

6

7

Direct experience

What a company communicates

What others say

Say positive

Benefit of the doubt

Buy Invest

Work for

Recommend the companyTrust the company

Welcome into the community

Recommend as an investment

Recommend products/services

Touch Points Reputation Supportive Behaviour

Choose

Stakeholders build their perceptions about a company through three types of channels:

• “Direct Experience” (buying product/service, contacting customer support

• “What a company communicates” (company’s own communication, marketing material, newsletters, website)

• “What others say” (word of mouth, media publications, expert opinions)

Perceptions gained through Direct Experience and Own Communication can be to large extent controlled by the company. What others say, on

the other hand, can only be influenced indirectly. The company needs to manage its reputation in order to appear in accordance to expectations

of its stakeholders.

Why should we care about reputation

Reputation is important, because it drives supportive behaviour and through support of its stakeholders allows the company to achieve business

results.

7

8

Significant differences and normative scale

Significant differences

In any study based on a sample of the population there is a statistical error in all measurements.

The table below shows the difference needed between two scores before they can be said to be significantly different.

Only score differences that are statistically significant will be shown in this report.

Normative scale

Using an extensive database containing results from thousands of studies throughout the world since 1998, Reputation Institute has developed

a Normative Scale (in everyday language “The Traffic Light”) that indicates whenever a particular score is high or low when benchmarked

against previous studies of a similar character.

Statistical Significance

RepTrak® Pulse > 3,7

Dimensions > 7,3

Excellent/Top tier 80+

Strong/Robust 70-79

Average/Moderate 60-69

Weak/Vulnerable 40-59

Poor/Lowest tier <40

8

9

Country Results

South Africa 2017

Section 2

10

Most Visible Companies

10

List of Companies

South Africa

[Sorted by Industry]

Financial_Short-Term Insurance FMCG Oil, Gas & Lubricants

1st for Women (Pty) Ltd Clover BP

Auto & General Coca Cola Caltex

Budget Insurance Nestle Engen

Dial Direct Procter & Gamble Sasol

MiWay Insurance SAB Miller Shell

Outsurance Tiger Brands Total South Africa

Santam Unilever

Financial – Bank Financial - Diversified Telecommunications

ABSA Discovery Cell C

Capitec Bank Holdings Liberty Holdings MTN Group

First National Bank Momentum Telkom SA

Nedbank Old Mutual Vodacom Group

Standard Bank Sanlam

Retail State Owned Enterprises

Edcon Group Eskom

Massmart Holdings South African Airways

Mr Price Group South African Broadcasting Association

Pick n Pay Holdings South African Post Office

Shoprite Holdings Transnet

The Foschini Group

The Spar Group

Truworths (International)

Woolworths Holdings

11

Company 2016 2017

1st for Women

ABSA

Auto & General

Barloworld

Bidvest

BP

Budget Insurance

Caltex

Capitec Bank

Cell C

Clover

Coca-Cola

Dial Direct

Discovery

Edcon Group

Engen

Eskom

First Rand_FNB

Foschini Group

Liberty Holdings

Massmart_Makro/Game/Dion

MiWay Insurance

Momentum

Mr Price Group

MTN

Company 2016 2017

Nedbank

Nestlé

Old Mutual

Outsurance

Pick n Pay

Procter & Gamble

SABMiller

Sanlam

Santam

Sasol

Shell

Shoprite

South African Airways

South African Broadcasting Corporation

South African Post Office

Spar Group

Standard Bank

Telkom

Tiger Brands

Total

Transnet

Truworths

Unilever

Vodacom

Woolworths

Measured companies - 2016 to 2017

11

12

Coca Cola 2% n = 2.152First National Bank 1% n = 2.302Eskom 1% n = 3.692Vodacom Group 1% n = 2.429Pick n Pay Holdings 1% n = 2.281Telkom SA 1% n = 3.456The Spar Group 2% n = 2.308Nestle 0% n = 2.260Mr Price Group 1% n = 2.350Cell C 1% n = 2.297Clover 0% n = 2.298ABSA 1% n = 2.248Shell 0% n = 2.215South African Post Office 0% n = 2.265Truworths 0% n = 2.328MTN Group 0% n = 2.615Woolworths Holdings 1% n = 3.789Standard Bank 0% n = 2.129Engen 0% n = 2.356Shoprite Holdings 1% n = 2.250Massmart Holdings_Makro/Game/Dion 0% n = 2.336Caltex 1% n = 2.346BP 0% n = 2.513Nedbank 1% n = 2.147Old Mutual 0% n = 2.322

Familiarity distribution (%)

[South Africa]

[sorted by very familiar]

85%

81%

80%

78%

78%

77%

76%

75%

75%

74%

74%

74%

74%

73%

73%

73%

72%

72%

71%

71%

69%

69%

69%

67%65%

12%

15%

17%

15%

16%

18%

17%

21%

21%

21%

21%

21%

22%

22%

21%

21%

20%

24%

23%

20%

21%

23%

25%

24%27%

1%

4%

2%

4%

3%

2%

4%

2%

3%

3%

3%

3%

3%

3%

5%

4%

5%

3%

3%

5%

6%

6%

4%

5%6%

0%

0%

1%

2%

1%

1%

1%

2%

1%

1%

1%

1%

1%

1%

1%

2%

2%

1%

2%

3%

4%

1%

2%

3%1%

Very familiar Somewhat familiar Have only heard the name Not at all familiar Not sure

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Familiarity Distribution

12

South Africa (1/2)

13

The Foschini Group 1% n = 2.245South African Airways 1% n = 2.490South African Broadcasting Corporation 1% n = 2.233Sasol 0% n = 2.472Discovery 1% n = 2.454Outsurance 1% n = 2.388Capitec Bank Holdings 1% n = 2.323Sanlam 0% n = 2.636Total South Africa 1% n = 2.742Tiger Brands 0% n = 2.509Transnet 0% n = 3.910SAB Miller 2% n = 2.777Unilever 1% n = 2.644Momentum 1% n = 2.462Edcon Group 1% n = 2.879Santam 1% n = 2.603MiWay Insurance 0% n = 3.011Budget Insurance 1% n = 2.459Auto & General 1% n = 2.6081st for Women 1% n = 2.951Bidvest 1% n = 2.784Dial Direct 1% n = 2.925Liberty Holdings 1% n = 2.874Barloworld 3% n = 3.259P & G 3% n = 3.446

Familiarity distribution (%)

[South Africa]

[sorted by very familiar]

65%

64%

64%

64%

62%

61%

61%

60%

59%

54%

51%

49%

47%

46%

45%

45%

43%

42%

42%

41%

40%

40%

39%

30%22%

27%

29%

24%

28%

26%

27%

28%

30%

25%

30%

30%

28%

30%

36%

24%

36%

32%

36%

33%

35%

36%

34%

31%

33%29%

5%

5%

7%

6%

9%

8%

8%

7%

9%

11%

14%

12%

13%

12%

14%

14%

18%

16%

18%

17%

18%

19%

17%

19%24%

2%

1%

3%

2%

2%

3%

1%

2%

6%

4%

5%

10%

9%

5%

16%

5%

7%

5%

6%

6%

5%

6%

12%

15%21%

Very familiar Somewhat familiar Have only heard the name Not at all familiar Not sure

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 13

Familiarity Distribution

South Africa (2/2)

14

South Africa – 2017 Top 10

14


Strong/Robust 70-79




1

2

3

4

5

6

7

8

9

10

80,3

79,5

77,6

76,7

76,3

75,8

75,6

75,2

72,7

72,4

RepTrak® Pulse – Top 10

South Africa: 2017

15

Changes in Top 10

2016 vs 2017

15


Strong/Robust 70-79




12

34

56

78

910

78,1

76,2

75,4

74,9

73,3

72,6

72,1

71,6

70,2

69,9

2016

1

2

3

4

5

6

7

8

9

10

80,3

79,5

77,6

76,7

76,3

75,8

75,6

75,2

72,7

72,4

2017

16

RepTrak® Pulse

South Africa 2017

Clo

ver

1

Coca C

ola

2

Pic

k n P

ay

Hold

ings

3

Nestle

4

First N

atio

nal B

ank

5

Woolw

ort

hs H

old

ings

6

The S

par

Gro

up

7

Old

Mutu

al

8

Dis

cove

ry

9

The F

oschin

i Gro

up

10

Massm

art

Hold

ings_M

akr

o/G

am

e/D

ion

11

Sanla

m

12

Tru

wort

hs

13

Bid

vest

14

Engen

15S

AB

Mill

er

16

Calte

x

17

Unile

ver

18

Tig

er

Bra

nds

19

Lib

ert

y H

old

ings

20

Capite

c B

ank

Hold

ings

21

Shell

22

Sasol

23

Mr

Price G

roup

24

Shoprite

Hold

ings

25

Barlow

orld

26

Santa

m

27

Sta

ndard

Bank

28

Nedbank

29

Edcon G

roup

30

Tota

l South

Afr

ica

31

Vodacom

Gro

up

32

BP

33

Outs

ura

nce

34

1st fo

r W

om

en (

Pty

) Ltd

35

Mom

entu

m

36

Auto

& G

enera

l

37

Budget In

sura

nce

38

MiW

ay

Insura

nce

39

Pro

cte

r &

Gam

ble

40

Dia

l Direct

41

MT

N G

roup

42

South

Afr

ican A

irw

ays

43

AB

SA

44

Cell

C

45

Tra

nsnet

46

Telk

om

SA

47

South

Afr

ican P

ost O

ffic

e

48

South

Afr

ican B

roadcastin

g C

orp

ora

tion

49

Esko

m

50

RepTrak® Pulse Rankings

2017

16


Strong/Robust 70-79




17

Industry Ranking

FMCG (7) n = 699

Retail (9) n = 1 101

Financial - Diversified (5) n = 502

Oil, Gas & Lubricants (6) n = 600

Financial - Banking (5) n = 500

Financial - Short-term Insurance (7) n = 702

Telecommunication (4) n = 602

State Owned Enterprises (5) n = 901

Total n = 5 807

72,8

72,1

70,8

69,7

68,7

66,8

63,5

58,4

45,2

Industry Rankings

2017

17

All score differences > +-3,7 are significant at 95% confidence interval


Strong/Robust 70-79




18

Industry Leaders

Leaders within each Industry

2017

FMCG (Clover)

Retail (Pick n Pay Holdings)

Financial - Banking (First National Bank)

Financial - Diversified (Old Mutual)

Oil, Gas & Lubricants (Engen)

Financial - Short-term Insurance (Santam)

Telecommunication (Vodacom Group)

State Owned Enterprises (South African Airways)

Industry Leaders

2017

18


Strong/Robust 70-79




19

Rank 2016 2017

FMCG

Retail

Financial - Banking

Financial - Diversified

Oil, Gas & Lubricants

Financial – Short-

term Insurance

Telecommunication

State-Owned

Enterprises

Industry Leaders

2016 vs 2017

19


Strong/Robust 70-79




20

Reputation Drivers

Dimensions 2017

21South Africa

n = 5.806

Explanation

Pro

du

cts

So

uth

Afr

ica

Enterprise

Products vs. enterprise analysis is based on two sets of

indices for all companies in South Africa: the Products

index (defined as Products & Services and Innovation)

and the Enterprise index (defined as Workplace,

Governance, Citizenship, Leadership and Performance).

The indices are created by multiplying each dimension

score by their respective South Africa weights.

The x-axis shows the deviation of the given company’s

Enterprise index from the South Africa average.

The y-axis shows the deviation of the given company’s

Product index from the South Africa average.

The line represents the average balance between the

Product and Enterprise dimensions for companies’

reputation in South Africa.

The reputation of companies above the line is more

strongly influenced by the Product dimensions (is Product-

centric), while the reputation of companies below the line

is more strongly influenced by the Enterprise dimensions

(is Enterprise-centric).

-24

-19

-14

-9

-4

1

6

-24 -19 -14 -9 -4 1 6

Products vs. Enterprise - driving reputation

21

22

In the Marketplace Just Two Factors are at Play

ENTERPRISEPRODUCTS

22

23

Who You Are Matters More than What You Do

% Influence on

Emotional Bond

South African Companies Overall Pulse

ENTERPRISE

69.1%

PRODUCTS

30.9%

66.0

23

24

2017 Reputation Drivers

To win the support and trust of

consumers, you have to engage on all 7

dimensions:

• Each of the 7 dimensions account for

more than 12% of reputation, except for

Workplace. So to win you need to excel

and communicate about each one of the

dimensions.

• The key reputation drivers: Product &

Services, Governance and Performance

explain almost 50% of reputation (47.4%).

• Building a company specific reputation

platform across dimensions is the key to

succeed in the reputation economy.

14.3% 17.5%

13.0% 13.4%

12.9%

15.6%

13.4%

Dimension Drivers

2017

1

2

3

24

25

Reputation Drivers Overtime

Products & Services 18,5 16,6 15,2 18,9 18,2 17,5

Innovation 15,4 15,9 14,8 15,5 13,4 13,4

Workplace 13,2 13,6 13,8 13,1 12,8 13,4

Governance 13,1 13,6 13,4 12,8 15,3 15,6

Citizenship 13,5 13,0 15,0 12,6 13,2 12,9

Leadership 12,6 12,7 12,9 12,7 13,6 13,0

Performance 13,7 14,7 14,8 14,4 13,5 14,3

Adj. R² n = 0.759 0.689 0.753 0.548 0.769 0.743

n = 2,300 1,999 2,400 10,547 5,000 5,000

Dimension Drivers Over TimeSouth Africa: 2012 - 2017

8

10

12

14

16

18

20

22

2012 2013 2014 2015 2016 2017

Products & Services

Governance

Performance

Innovation

WorkplaceLeadership

Citizenship

25

26

Dimension Rankings – Winner Per Dimension

26

2017

2016 vs 2017

2016


Strong/Robust 70-79




27

Performance

Coca-Cola

Clover

Pick n Pay

Nestlé

First National Bank

The Spar Group Woolw orths The Spar Group

Bidvest Discovery First National Bank

Coca-Cola Coca-Cola Pick n Pay

Clover Pick n Pay Clover

Governance Citizenship Leadership

Pick n Pay Clover Coca-Cola

Woolw orths Nestlé Sanlam

First National Bank Pick n Pay Sasol

Coca-Cola Clover First National Bank

Nestlé First National Bank Clover

Products and Services Innovation Workplace

Clover Coca-Cola Coca-Cola

Dimension Rankings – Top 5

27


Strong/Robust 70-79




28

Dimension Quadrant

RepT

rak®

Dim

ensio

n I

mport

ance:

2017

South

Afr

ica

South Africa

RepTrak® Dimension Scores: 2017

Products & Services

InnovationWorkplace

Governance

Citizenship

Leadership

Performance

12,0

17,0

60,0

Products/Services Innovation Workplace Governance Citizenship Leadership Performance

Lower Priority Weaknesses Lower Priority Strengths

Score Weights

Products 66,7 17,5

Innovation 65,0 13,4

Workplace 63,1 13,4

Governance 63,6 15,6

Citizenship 63,4 12,9

Leadership 64,2 13,0

Performance 66,9 14,3

n = 5,806

28

All score differences > +-3,7 are significant at 95% confidence interval


Strong/Robust 70-79




29

Dimension distribution Q1 2017

Score

Products & Services 6% 3% 66,7

Innovation 7% 4% 65,0

Workplace 6% 20% 63,1

Governance 7% 10% 63,6

Citizenship 7% 13% 63,4

Leadership 7% 11% 64,2

Performance 6% 11% 66,9

n = 5.806

South Africa

[by dimension order]

36%

37%

33%

37%

36%

35%

33%

55%

51%

40%

46%

44%

47%

51%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Negative (1-2) Neutral (3-5) Positive (6-7) "Not sure %"

Dimension Distribution

South Africa

29

30

Supportive Behaviour

2017

31

RepTrak® Pulse vs. Recommend company (%) in South Africa

If a company improves its reputation by 5 points, the number of people who would recommend the company goes up by 6.3%.

RepTrak® Pulse Score

Will

ingness t

o s

upport

(R

ecom

mend c

om

pany t

o o

thers

Top-t

wo b

ox)

ABSA

Barlow orld

BidvestBP

Clover

Coca Cola

Dial Direct

Discovery

Engen

Eskom

First National Bank (FNB)

Massmart

MomentumMTN

Nedbank

Nestlé

Old Mutual

Pick n Pay

Procter & Gamble

Shoprite

South African Airways

South African Broadcasting Association

South African Post Office

Telkom

Transnet

Woolw orths Holdings

20%

30%

40%

50%

60%

70%

80%

90%

25 30 35 40 45 50 55 60 65 70 75 80 85

Adj. R² = 0.92


Strong/Robust 70-79




32

Support for the most and least reputable companies in South Africa

32

Top 5 vs bottom 5

Supportive behavior distribution Count

The 5 most reputable companies 3% 0% n = 499

The 5 least reputable companies 28% 2% n = 1.101












The 5 least reputable companies 37% 4% n = 1.101Work for

The most reputable companies vs. least reputable companies

Recommend as investment

Buy

Recommend products

Trust to do the right thing

Say something positive

Invest

19%

38%

21%

39%

25%

37%

22%

39%

22%

31%

23%

31%

25%

29%

77%

32%

76%

31%

69%

29%

76%

31%

70%

28%

69%

29%

62%

30%

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

Negative (1-2) Neutral (3-5) Positive (6-7) Not sure

33

Most Supported Companies – Top 5 Buy

[Sorted by Positive]

1 Clover 1% 1%

2 Nestlé 1% 0%

3 Coca-Cola 4% 0%

4 Woolw orths 4% 0%

5 The Foschini Group 5% 2%


13%

19%

16%

17%

16%

85%

80%

80%

79%

77%

Recommend Products


1 Clover 1% 0%

2 Nestlé 3% 0%

3 Woolw orths 5% 0%

4 Coca-Cola 5% 0%

5 The Spar Group 1% 0%


15%

17%

18%

19%

26%

84%

80%

77%

76%

73%

Trust


1 Coca-Cola 4% 2%

2 Clover 2% 4%

3 Nestlé 2% 2%

4 Woolw orths 5% 2%

5 Old Mutual 3% 3%


19%

19%

24%

25%

27%

75%

75%

72%

68%

67%

Say Positive


1 Coca-Cola 4% 0%

2 Clover 1% 1%

3 Nestlé 1% 0%

4 Woolw orths 4% 1%

5 Old Mutual 2% 1%


16%

19%

23%

20%

23%

80%

79%

76%

75%

74%

Invest


1 Coca-Cola 3% 6%

2 Old Mutual 3% 3%

3 Pick n Pay 2% 4%

4 Clover 1% 4%

5 First National Bank 6% 2%


11%

22%

23%

26%

25%

80%

72%

71%

69%

67%

Recommend as Investment


1 Coca-Cola 2% 6%

2 Old Mutual 4% 2%

3 Nestlé 2% 6%

4 Pick n Pay 3% 4%

5 Clover 0% 7%


13%

22%

24%

26%

27%

79%

72%

68%

67%

66%

Work for


1 Coca-Cola 7% 5%

2 Nestlé 4% 6%

3 Bidvest 3% 7%

4 Clover 7% 5%



20%

24%

28%

27%

29%

68%

66%

62%

61%

59%

Benefit of Doubt


1 Clover 2% 6%

2 Coca-Cola 4% 1%

3 The Spar Group 1% 1%

4 Nestlé 5% 3%



17%

24%

32%

28%

27%

75%

71%

66%

64%

62%

Welcome into my Community


1 Clover 0% 1%

2 Coca-Cola 4% 1%

3 Pick n Pay 2% 0%

4 Woolw orths 4% 0%

5 Nestlé 4% 1%


13%

12%

23%

22%

22%

86%

83%

75%

73%

73%

Recommend Company


1 Clover 1% 0%

2 Coca-Cola 5% 0%

3 Nestlé 2% 2%

4 Woolw orths 4% 2%

5 Pick n Pay 2% 2%


17%

17%

19%

20%

24%

82%

78%

77%

74%

72%

34

Appendix 1 Demographics

Demographics

35

Respondent Profile

South Africa 2017

3%4%5%6%7%

10%15%

23%27%

Northern CapeLimpopo

MpumalangaNorth West

Free StateEastern Cape

Western CapeKwaZulu-Natal

GautengGeography

22%

32%

21%25%

18-24 25-34 35-44 45-64

Age GroupGender

50.0%

50.0%

Education65%

35%

Loweducation

HighEducation

Middleeducation

Income

27% 25%34%

14%

LowIncome

MiddleIncome

HighIncome

Don'twish toanswer

3%

7%

9%

33%

47%

Prefer not to answer

Coloured

Indian/Asian

African

WhiteRace

35

36

Methodology

Fielding methodology. Research design. Key analyses

and modelling techniques.

Appendix 2

37

Fielding methodology & Research design

Qualified respondents are: Adults between 18-64 who reported that they were either “Somewhat Familiar” or “Very Familiar” with one of the companies in the

study. Furthermore, respondents who are not able to give valid responses to 3 of the 4 Pulse questions are screened out.

Data collection method: Respondents filled out a 15 minute online RepTrak® questionnaire designed to measure overall corporate reputation and related

questions. The questionnaire used for this research is based on the proprietary RepTrak® model developed by Reputation Institute for analysis of corporate

reputations. Respondents were invited to participate in this project through emailed invitations sent to a carefully screened online panel managed by an

established commercial market research firm, member of ESOMAR. Respondents were randomly assigned to rate up to 5 companies in a Pulse study and 2

companies in a Deep Dive study with which they were familiar.

Fielding period: February – March, 2017

Number of respondents: A minimum of 300 respondents provided ratings for each Deep Dive and a minimum of 100 for each Pulse company in the study.

Sample representation: Responses were weighted to represent the national profile on demographics, including age and gender.

Note on Gaps: All Gaps are calculated using exact scores. Occasionally reported gaps appear to differ by 0.1 from gaps calculated between scores with one

decimal. This is due to rounding error.

Note on Sample Sizes: All sample sizes reported are based on weighted data. Occasionally the weighting procedure produces a slightly smaller or larger

sample size than the unweighted raw data otherwise would.

Note on RepTrak® Pulse Scores: The RepTrak® Pulse is calculated on the basis of the answers from the four variables that measure the respondent’s

esteem, feeling, admiration and trust (captured in the Pulse score on a 0-100 scale).

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Key Analysis & Modeling Techniques

RepTrak® Pulse Score

All RepTrak® analyses begin with a single reputation score (the RepTrak® Pulse) that is decomposed into a set of underlying dimensions and attributes. The

process of decomposition involves application of various forms of multivariate analyses designed to address interdependence and multicollinearity in data

obtained from cognitive research.

At the core, the RepTrak® Pulse measures reputation consisting of three questions about the emotional appeal of the company and a rating of the “Overall

Reputation” of the company. Structural Equation Modelling indicates that these four variables are a reliable indicator of the reputation construct.

• [Company] is a company I have a good feeling about

• [Company] is a company that I trust

• [Company] is a company that I admire and respect

• [Company] has a good overall reputation

Attributes were measured on 7-point scales, where 1 = Strongly Disagree and 7 = Strongly Agree.

Results are re-scaled to 100-point scale for easier interpretation.

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Normative Scale

Using an extensive database containing results from thousands of studies throughout the world since 1998, Reputation Institute has

developed a Normative Scale (in everyday language “The Traffic Light”) that indicates whenever a particular score is high or low

when benchmarked against previous studies of a similar character.

Driver Analysis

The relative contribution of individual dimensions to the RepTrak® Pulse is calculated from a factor adjusted regression modeling procedure. Individual

dimension weights range from 0-1, and total to 100%.

To determine drivers of reputation, the weights are developed with a Factor Adjusted Linear Regression:

Factor analysis is used to determine the unique contribution of each attribute to the variance of the RepTrak® Pulse. Equamax rotation is used to

assign the factors to the dimensions. It creates an orthogonal structure of uncorrelated variables that allows the regression to be performed without

interference from multicollinearity. It is used to maximize interpretation of the final set of regression coefficients.

Linear Regression is run using the Raw Pulse Construct as the dependent variable and the factor scores as the independent variables. Only

attributes that were found to be significantly correlated with the reputation (p<0.05) have driver weights assigned.

Excellent/Top Tier Above 80

Strong/Robust 70-79



Poor/Bottom Tier Below 40

Key Analysis & Modeling Techniques

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Statistical Significance

Statistical Significance of Results Reported in RepTrak® Projects

Individual responses to questions asked in a survey enable the calculation of various statistical measures, including averages (means) and standard deviations.

The greater the number of responses used in calculating an average, the more confident we are about the accuracy of the score. Similarly, the smaller the range

of responses made to a specific question, the more confident we are about the score.

Reputation Institute reports scores with a 95% confidence interval in the surveys that we conduct. The interval describes our confidence that, if we conducted

the same study repeatedly, 95 times out of 100 the obtained score would lie within the confidence interval. It therefore describes how statistically different a

score is likely to be from another score.

If a measure is created from multiple questions, the variation in responses is reduced, and our confidence in the average obtained

from the combined questions is higher, thereby shrinking the confidence interval.

The specific formula Reputation Institute therefore uses to calculate a 95% confidence interval around the mean is therefore:

Confidence Interval = Average Score +/- 1.96 * Average Standard Deviation of Attributes / SQRT (Sample Size * # of Attributes)

Directional Scores

When analyzing subgroups and/or specific and hard-to-reach stakeholders, sample sizes will often have limited power and reliability. As the sample size shrinks,

results become directional in nature. At extremely low counts, results become unreliable and are not shown.

In this report low and insufficient counts are denoted as per below:

*Low counts (<50) – scores are directional (refer to appendix for details on directional scores)

**Insufficient counts (<30)

Reporting Results

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Standardizing all Reputation Scores

RepTrak® Scores - Standardized and Comparable

Market research shows that people are inclined to rate companies more or less favorably in different countries,

or when they are asked questions directly or online. When asked in a personal interview, for example, it’s known

that people tend to give a company higher ratings than when they are asked by phone, or when they are asked

to answer questions about the company online. This is a well-established source of ‘systematic bias’. Another

source of systematic bias comes from national culture - in some countries, people are universally more positive

in their responses than in other countries. In statistical terms, it means that the entire distribution of scores in a

‘positive’ country is artificially ‘shifted’ in a positive direction for all companies, good or bad. The distribution of

scores in that country may also be more ‘spread out’ than in another because people have more information and

are able to make more subtle differences between companies.

To overcome this systematic bias, Reputation Institute’s policy is to adjust all RepTrak® scores by standardizing

them against the aggregate distribution of all scores obtained from the Reputation Institute’s Annual Global

RepTrak® Pulse. Standardization has the effect of lowering scores in countries that tend to over-rate

companies, and has the effect of raising scores for companies in countries that tend to rate companies more

negatively. Two adjustments are made for every RepTrak® Score

Reputation Institute uses its cumulative database of RepTrak® Pulse scores about reputation scores internationally to carry out two adjustments:

Country Adjustment: All scores derived from surveys are standardized by subtracting the country mean and dividing by the standard deviation of all known

scores previously obtained in that country. In statistical terms, this adjustment ‘normalizes’ the distribution of scores in the country to a mean of 0 and a standard

deviation of 1, producing a ‘z-score’ for the observation.

Global Adjustment: The ‘z-score’ obtained on the country level is then used to determine the globally adjusted score. In order to do this, the results are scaled

back by multiplying each company’s score by the global standard deviation and adding back the global mean. The resulting number is the globally adjusted

score.

As additional global research comes in, Reputation Institute regularly updates the country and global distributions that are used to create our standardized

RepTrak® scores. All RepTrak® results are therefore comparable across industries, countries, and over time. 41

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