table of contents - wrightimc · table of contents 3 5 10 23 28 introduction real-world brands...
TRANSCRIPT
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Introduction
Real-World Brands Taking Stands
Survey Results
Answers & Analysis
Conclusion
3
The rise of content marketing as a viable corporate strategy
is a welcome development to most digital marketers.
Especially those who view the marketing world through a
search engine optimization (SEO) tinted lens. For years,
SEOs have been hollowly repeating the mantra that
“content is king” in public, while utilizing algorithm-hacking
tricks behind closed doors. Recent changes by the major
search engines have made marketers of all types re-think
their content strategy – and the good news is marketers
are now creating increasing volumes of quality content
that users actually want to read.
At WrightIMC, we encourage clients to be bold in
their content marketing. Based on our experience and
observation of the current digital landscape, brands that
cultivate and embrace a strong personality create more
opportunities for interaction, brand-building and sales.
Just as with individuals, a prominent tactic that solidifies a
brand personality is having an opinion and taking a stand
on controversial issues.
The benefits to taking a stand are numerous. From an
SEO point of view, controversy generally spurs other sites
to link to the brand taking a stand. For those not familiar
with SEO, links are arguably the most important factor that
the major search engines use to rank and determine the
relevancy of sites to specific search queries. In addition
to the SEO benefits, strong stances from brands can help
solidify brand preference with those who agree with the
stand. And, many consumers who aren’t passionate about
the topic a brand supports are unaffected by the stance
but exposed to the brand through news and social media
coverage.
The increased effectiveness of real-time marketing
also provides opportunities for brands to get in front of
audiences with engaging, yet controversial, material and
further promote the brand’s identity to extremely engaged
consumers. We believe that, in many cases, the old PR cliché,
“I don’t care what you say about me, just spell my name
right,” is very applicable in today’s digital environment.
Many companies are reluctant to implement the added
transparency that comes with identifying a brand with a
controversial or semi-controversial stance – and with good
reason. Taking a stand can alienate customers, incite a
vocal opposition to the brand, require extra resources to
respond to inquiries about the stand, and in general be a
big pain.
We know that there can be benefits from a digital marketing
perspective – especially SEO – for brands to take a stand.
But for many marketers, alienating any customer seems
counter-intuitive. For years, public relations practitioners
have taken the approach that the best practice is for
brands to stay away from controversy and remain neutral
on social and political issues. Especially in publicly-traded
companies, taking a stand that might endanger the stock
price is seen as corporate communications suicide.
In the end, money usually makes the decision. Traditional
risk-management usually dictates that taking a controversial
stand is simply not an option. Our question and the impetus
for writing this paper, however, is how much of a risk is
there to the bottom-line by taking a well-researched stand?
INTRODUCTION: SHOULD YOUR BRAND TAKE A STAND?
When brands take a controversial
stand, how is their bottom line
affected?
Do consumers say that a brand’s
social or political stance affects their
propensity to buy that brand’s
product or service?
What items should a brand consider
before taking a stand on a
controversial subject?
PurPose of this rePort
The purpose of this paper is to create baseline answers to the following questions:
1 2 3
4
rePort Methodology
In order to answer the questions above, WrightIMC researched incidents where companies took a stand on controversial or
semi-controversial subjects and examined the outcomes from a digital marketing as well as bottom-line effects standpoint.
Most of the incidents that presented enough data for analysis were high profile and received national news attention. WrightIMC
avoided citing incidents where companies were put into controversial situations or crises without a conscious decision from
the brand. Examples of this would include BP’s oil spill in the Gulf Coast, Carnival Cruise Lines’ engine malfunctions, Apple’s
customer service woes in China, or other situations where the company was put into a controversial limelight without a
calculated stance.
WrightIMC also conducted a survey using Google’s Consumer Survey Tool. In this survey, 3,012 random Google users were
asked the degree to which they agreed with one of the following two statements:
1 2When I make a purchase, I consider the social stance of
the company that makes the product I am purchasing.
I won’t buy a product if I disagree with the product maker’s
political or social stance.
Survey recipients responded by checking one of the
following choices to the question:
• Agree
• Strongly Agree
• Disagree
• Strongly Disagree
• Neither Agree nor Disagree
Google’s Consumer Survey Tool collection methodology
can be found at:
http://www.google.com/insights/consumersurveys/how
For this report, we have chosen to highlight significant
items uncovered in the survey results. The full results of
the survey data can be obtained upon request by sending
an e-mail to [email protected] with the subject line
“Survey Data – Brand Controversy Study 1.” Be sure to
include the e-mail address where you would like the data
to be sent.
5
stand taken:
In perhaps the most-publicized, controversial stand of the
last decade, the fast-food chain Chick-fil-A® confirmed its
conviction on the matter of same-sex marriage.
Chick-fil-A President and Chief Operating Officer, Dan
Cathy, told Baptist Press that Chick-fil-A “is very much
supportive of the family – the Biblical definition of the
family unit.” He also said that his statement, “… might not
be popular with everyone, but thank the Lord, we live in a
country where we can share our values and operate on
Biblical principles.” (Published July 16, 2012)
ChiCk-fil-a’s resPonse:
• “The Chick-fil-A culture and service tradition in our
restaurants is to treat every person with honor, dignity and
respect—regardless of their belief, race, creed, sexual
orientation or gender.”
• Chick-fil-A did not directly address the company stance
on gay marriage, but let Facebook fans know that it was
going to try to step out of the spotlight on the issue by
stating, “Going forward, our intent is to leave the policy
debate over same-sex marriage to the government and
political arena.”
• On September 19, 2012, a brand-issued neutral
statement was announced, “its corporate giving had been
mischaracterized for many months.”
BaCklash:
• The Jim Henson Company, provider of Chick-fil-A’s
kid’s meals toys, will not partner with the company on any
future endeavors. The company also decided to donate
its payment from Chick-fil-A to the Gay and Lesbian
Alliance Against Defamation.
• Politicians got involved:
San Francisco Mayor, Edwin Lee (Against)
Boston Mayor, Thomas Menino (Against)
Chicago Mayor, Rahm Emanuel (Against)
• Presidential candidate, Mike Huckabee deemed August
1 “Chick-fil-A Appreciation Day” to support consumers
eating at the chain.
• According to YouGov Brand Index, which tracks
consumer sentiment for 1,100 brands on a daily basis, it
looks to be the sharpest perception drop of any fast food
dining chain in the past 2 years. Its ratings have been
climbing back since mid-August, but still have not reached
its same rating prior to the stance.
• Irv Schenkler, New York University’s Stern School of
Business said, “Mr. Cathy, who is trying to expand further
into Northern cities, took a risk by stepping into a sensitive
social issue. The backlash has established an identity
for the CFA (Chick-fil-A) brand in areas of the U.S. that
generally feel differently about gay marriage.”
REAL-WORLD BRANDS TAKING STANDS
CoMPany:
6
• Following August 1, 2012, “Chick-fil-A Appreciation
Day,” same-sex couples retaliated against the brand by
participating in “kiss-ins” at various Chick-fil-A locations
across the U.S on August 3, 2012.
• One particular Chick-fil-A location in Torrance, Calif.,
was tagged with graffiti on the side of the restaurant
that read, “Tastes like hate” and had a painting of a cow.
Monetary/interaCtive Marketing iMPaCt:
• According to Chick-fil-A, it did record business on
“Chick-fil-A Appreciation Day” on August 1, 2012.
• “While we don’t release exact sales numbers, we can
confirm reports that it was a record-setting day,” said
Chick-fil-A’s executive vice president of marketing, Steve
Robinson
• Chick-fil-A added 524,238 new Facebook fans in July
2012.
• Its Twitter account, prior to the stance, averaged
400,000 Tweets per quarter. Afterwards, in the first week
alone, 498,000 Tweets mentioned Chick-fil-A.
7
stand taken:
On January 31, 2012, Susan G. Komen® cut off funding
for Planned Parenthood clinics allegedly because the
clinics were under investigation by Congress. Planned
Parenthood previously received approximately $680,000
per year, for the past five years, from the foundation.
According to Planned Parenthood, these funds were
used to provide more than 170,000 clinical breast exams
and 6,400 mammogram referrals, mainly to low-income,
minority women across the U.S. According to Planned
Parenthood®, the groups that prompted the Congressional
investigation are anti-abortion advocacy organizations that
have long criticized Planned Parenthood because some of
its clinics offer abortions.
The public perceived that the funding cuts by Susan G.
Komen were made for political reasons in response to
Planned Parenthood’s pro-choice stance.
susan g. koMen’s resPonse:
• On January 3, 2012, Susan G. Komen’s president and
founder Nancy Brinker said, “We want to apologize to the
American public for recent decisions that cast doubt upon
our commitment to our mission of saving women’s lives.
We have been distressed at the presumption that the
changes made to our funding criteria were done for political
reasons or to specifically penalize Planned Parenthood.
They were not. Our original desire was to fulfill our fiduciary
duty to our donors by not funding grant applications made
by organizations under investigation. We will amend the
criteria to make clear that disqualifying investigations must
be criminal and conclusive in nature and not political. That
is what is right and fair.”
• Planned Parenthood’s response stated, “Our only goal
for our granting process is to support women and families
in the fight against breast cancer. Amending our criteria
will ensure that politics has no place in our grant process.
We will continue to fund existing grants, including those
of Planned Parenthood, and preserve their eligibility to
apply for future grants, while maintaining the ability of our
affiliates to make funding decisions that meet the needs of
their communities.”
• Susan G. Komen’s new senior vice president for public
policy, Karen Handel, was allegedly behind the decision
to cut off Planned Parenthood funding. “Let me be clear,
since I am pro-life, I do not support the mission of Planned
Parenthood,” Handel wrote on her campaign website in
2010.
BaCklash:
Politicians got involved:
• Senator Barbara Boxer (D-California) stated, “I was
perplexed and troubled to see the decision by Susan G.
Komen to cut off funding for life-saving breast cancer
screenings through Planned Parenthood because of a
political witch hunt by House Republicans. I truly hope
that they will reconsider this decision and put the needs of
women first.”
• Representative Jackie Speier (D-California) stated on
the House floor, “I have been a big booster of the Susan G.
Komen organization, but not anymore.”
• Planned Parenthood’s response was: “Bullying and
trying to make political women’s access to health care is a
losing political strategy,” said Cecile Richards, president of
Planned Parenthood. She also said she “… looks forward
to resuming a partnership with the Susan G. Komen
Foundation.” She praised the move and the “outpouring
of support” her organization has received since the
announcement was made. She also dubbed it a “learning
opportunity.”
• Susan G. Komen’s top public-health official, Mollie
Williams, resigned in protest immediately following the
®CoMPany:
8
decision to cut off Planned Parenthood funding. Williams
was the managing director of community-health programs
and was responsible for allocating $93 million in annual
grants.
• A number of Komen foundation board members resigned
in the wake of that decision.
Monetary/interaCtive Marketing iMPaCt:
• Susan G. Komen has faced a massive social media
backlash since its announcement, with numerous people
saying they will no longer donate to the breast cancer
charity. Many Facebook comments were complaints
that Komen is scrapping some of the more negative
comments.
• According to a new Polipulse analysis of online
conversations about the issue, only 26 percent of people
believe Komen made the right decision. Nearly a quarter of
the people who expressed criticism of Susan G. Komen’s
decision online said they were going to pull their donations
from Susan G. Komen.
• In a recent study by Harris Interactive, Komen’s “brand
health” score fell 21 percent from 2011 to 2012. In the 23
years Harris has done the study, only Fannie Mae in 2009
had a bigger drop.
• According to Fox News, organizers of Komen Race for
the Cure events saw significant declines in participation –
some as high as 30%. The group also reported a drop in
fund-raising.
9
stand taken:
In February 2013, Hobby Lobby® refused to comply with
a mandate issued by the U.S. Department of Health and
Human Services requiring all employer health plans to
provide free contraceptives, sterilizations and abortion-
inducing drugs. The Christian-owned retail chain wished,
“… to remain true to their faith and not pay for abortion
inducing drugs,” according to the attorney representing
Hobby Lobby.
Subsequently, they filed a lawsuit requesting that a judge
overturn the mandate to businesses that requires them
to provide those services in their insurance coverage.
A government lawyer said that the drugs “do not cause
abortions,” and that the U.S. “… has a compelling interest in
mandating insurance coverage for them.” Despite the fact that
the company considered the requirements objectionable,
a judge denied their request.
hoBBy loBBy’s resPonse:
• “We simply cannot abandon our religious beliefs to
comply with this mandate,” David Green, Hobby Lobby
chief executive officer and founder, said in a press
release.
• Green said his company has no objection with covering
birth control, but it refuses to pay for two specific drugs:
Plan B and Ella, the morning-after pill and the week-after
pill, respectively.
• “Our faith is being challenged by the federal government,”
Green said in a statement. “These abortion-causing drugs
go against our faith, and our family is now being forced
to choose between following the laws of the land that we
love or maintaining the religious beliefs that have made
our business successful.”
BaCklash:
• Politicians got involved:
On February 19, 2013, Senate Minority Leader Mitch
McConnell (Ken.) and 10 other GOP lawmakers including
Sen. Orrin Hatch (Utah) and Rep. Lamar Smith (Texas)
filed an amici curiae brief with the U.S. Court of Appeals for
the 10th Circuit in Denver supporting Hobby Lobby’s fight
against the government mandate. “It’s deeply troubling to
see this White House trample on the religious freedom
the law seeks to protect,” Hatch said in a press release.
“Religious freedom is an issue our country was founded
on.” The lawmaker’s Feb. 19 brief specifically says the birth
control mandate runs counter to the Religious Freedom
Restoration Act of 1993.
Monetary/interaCtive Marketing iMPaCt:
• By refusing to comply, Hobby Lobby faces fines of up to
$1.3 million per day, adding up to more than $40 million in
January alone. Supporters of Hobby Lobby’s stand have
launched a nationwide support campaign, asking people
to shop at the store on Saturday to show their support.
• In just two days after the filing of the amici curiae brief,
more than 24,000 people accepted a Facebook invitation
to show their support.
CoMPany:
10
®
stand taken:
J. C. Penney Company, Inc.® showed its support for
gay and lesbian couples by naming Ellen Degeneres as
its spokesperson, and featuring a lesbian couple in its
Mother’s Day catalog.
J.C. Penney’s resPonse:
J. C. Penney’s then CEO, former Apple executive Ron
Johnson, explained to the Associated Press why the company
chose Degeneres, “I think Ellen is someone we all trust.
She’s lovable, likable, honest and funny, but at her soul, we
trust her.”
BaCklash:
• OneMillionMoms.com, a division of the American Family
Association, called for Degeneres to be replaced by the
Texas-based chain because she is a lesbian.
• “Funny that J. C. Penney thinks hiring an open
homosexual spokesperson will help their business
when most of their customers are traditional families,”
OneMillionMoms.com said in a statement. “DeGeneres is
not a true representation of the type of families that shop at
their store. The majority of J. C. Penney shoppers will be
offended and choose to no longer shop there. The small
percentage of customers they are attempting to satisfy will
not offset their loss in sales.”
• The group’s statement concludes, “By jumping on the
pro-gay bandwagon, J. C. Penney is attempting to gain a
new target market and in the process will lose customers
with traditional values that have been faithful to them over all
these years.”
Monetary/interaCtive Marketing iMPaCt:
• The protest of One Million Moms seems to coincide with
positive jolts in J. C. Penney’s consumer perception with
mothers.
• YouGov BrandIndex measurement scores range from
100 to -100 and are compiled by subtracting negative
feedback from positive. A zero score means equal
positive and negative feedback. Before the catalog
was delivered, J. C. Penney’s score was 80 on April
27. After those catalogs arrived and One Million Moms
posted its missive on May 1, the store’s Index score
rose to 88 two days later. That same day, the Index
score for Kohl’s, J.C. Penney’s competitor, was 81.
CoMPany:
11
stand taken:
Starbucks®, along with Microsoft and Nike (70 corporations
in total http://thinkprogress.org/lgbt/2011/11/03/360937/70-
corporations-come-out-against-defense-of-marriage-act/),
joined together in support of Washington state’s legislation
that would legalize gay marriage. This move sparked the
National Organization for Marriage (NOM), a conservative
Christian group against gay marriage, to organize a “Dump
Starbucks” boycott campaign two months later.
On March 21, 2013, at Starbucks’ annual shareholder
meeting, a disgruntled investor blamed Starbucks’
recent poor stock performance on the boycott. Starbucks
CEO, Howard Schultz, responded by saying, “If you feel
respectfully that you can get a higher return [than] the 38%
you got last year, it’s a free country. You could sell your
shares at Starbucks and buy shares in other companies.”
BaCklash:
• The NOM’s website says more than 60,000 people have
joined its boycott.
• NOM formed http://www.dumpstarbucks.com/ and
encouraged Starbucks customers to ‘Dump Starbucks’
because of its corporate-wide position to support gay
marriage. As of April 12, 2013, the petition has received
61,415 signatures.
• In April 2012, NOM announced it would be expanding
internationally with DumpStarbucks.com online ads
running in Egypt, Beijing, Hong Kong, the Yunnan region
of China, United Arab Emirates, Bahrain, Oman and
Kuwait. Its strategy is to target countries that criminalize
homosexuality.
• The same group formed a Facebook page, https://www.
facebook.com/dumpstarbucks, which has a total of 18,169
Likes (10,000 of those ‘likes’ occurred during the first seven
days), as well as https://twitter.com/dumpstarbucks, which
has 512 Followers.
• In retaliation, SumOfUs, launched its own campaign
with a giant card titled, “Thank You, Starbucks,” and it
encouraged Starbucks supporters to sign it, with a total of
652,340 signatures as of April 12, 2013. (http://sumofus.
org/campaigns/thank-starbucks/) The campaign even
created a theme song: http://youtu.be/S9VN61qgfvo.
The Twitter handle @pumpstarbucks currently has 265
Followers.
Monetary/interaCtive Marketing iMPaCt:
• Starbucks shares were trading at about $53 a share the
day NOM announced its boycott. One month later, shares
were trading at about $58 each. (http://www.mediaite.
com/online/conservatives-boycott-starbucks-over-coffee-
chains-support-of-same-sex-marriage/) SBUX stock since
NOM’s ‘Dump Starbucks’ boycott began. (http://www.
goodasyou.org/good_as_you/2012/04/sbux-stock-since-
the-nomtweets-dumpstarbucks-boycott-began.html)
• According to Zack Hutson, a Starbucks spokesman, the
company is feeling no effects from the campaign.
• The social media world buzzed mostly support for the
company’s stance.
(http://www.thenextgreatgeneration.com/2012/02/
starbucks-says-i-do-to-same-sex-marriage-sees-social-
media-backlash/)
CoMPany:
12
Neither agree nor disagree
Agree
Disagree
Strongly Agree
Strongly Disagree
26.5% (+2.5 / -2.4)
20.4% (+2.4 / -2.2)
11.7% (+2.0 / -1.7)
35.1% (+2.7 / -2.6)
6.2% (+1.7 / -1.4)
ALL (1333)
Neigher agree nor disagree 35.1% (+2.7 / -2.6)
Agree 26.5% (+2.5 / -2.4)
Disagree 20.4% (+2.4 / -2.2)
Strongly Agree 11.7% (+2.0 / -1.7)
Strongly Disagree 6.2% (+1.7 / -1.4)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1333 online responses. Sample: National adult internet population.
single answer
When I make a purchase, I consider the social stance of the company that makes the product I am purchasing.
Results for respondents with demographics. Weighted by Age, Gender, Region. (1333 responses)
Order statistically significant.
1 2When I make a purchase, I consider the social stance of
the company that makes the product I am purchasing.
I won’t buy a product if I disagree with the product maker’s
political or social stance.
Survey recipients responded by checking one of the
following choices to the question:
• Agree
• Strongly Agree
• Disagree
• Strongly Disagree
• Neither Agree nor Disagree
Overall, our survey results show that the majority of
consumers either didn’t want to answer the question or are
apathetic about a company’s stance and chose to answer
“Neither Agree nor Disagree” on both questions. However,
it is important to note that those who did choose to answer
do claim to base their buying decisions on a company’s
political or social stance.
SURVEY RESULTSIn order to better understand general consumer’s attitudes towards brands that publicize their social and political views on
perceived controversial subjects, WrightIMC conducted a short survey utilizing Google’s Consumer Survey tool. More than
3,000 consumers with diverse regional, economic and age differences responded to the survey. These consumers where
asked to answer one of two questions:
13
ALL (1318)
Neither agree nor disagree 35.1 % (+2.8 / -2.7)
Agree 28.6 % (+2.6 / -2.5)
Disagree 16.5 % (+2.3 / -2.1)
Strongly Agree 15.0 % (+2.2 / -2.0)
Strongly Disagree 4.8 % (+1.6 / -1.2)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1318 online responses. Sample: National adult internet population.
Neither agree nor disagree
Agree
Disagree
Strongly Agree
Strongly Disagree
28.6 % (+2.6 / -2.5)
16.5 % (+2.3 / -2.1)
15.0 % (+2.2 / -2.0)
35.1 % (+2.8 / -2.7)
4.8 % (+1.6 / -1.2)
single answer
I won’t buy a product if I disagree with the product makers political or social stance.
Results for respondents with demographics. Weighted by Age, Gender, Region. (1318 responses)
Winner statistically significant.
The survey also uncovered several statistically significant findings. These findings pointedly show that age, regional
affiliation, urban or rural settings, as well as income level are all important factors in understanding the different attitudes of
consumers toward brands that take stands.
single answer
When I make a purchase, I consider the social stance of the company that makes the product I am purchasing.
39 insights investigated. 7.8 false discoveries expected on average (p value: 0.02).
Among people in the US Midwest, those earning $50-$74K picked disagree 2x more than those earning $25-$49K.
16.3 %
34.7 %
14
Among people earning $25K-$49K, age affected how
many people picked neither agree nor disagree.
Among people in suburban areas, age affected how many
people picked neither agree nor disagree.
Among 45-54 year olds, women picked agree more
than men.
Among men, those aged 55-64 picked agree more than
those aged 45-54.
Among 45-54 year olds, women picked agree more
19.9 %
35.9 %
Among men, those aged 55-64 picked agreegree more than more than
19.9 %
36.4 %
Among people in urban areas, age affected how many people picked neither agree nor disagree.
29.8 %
56.7 %
31.6 %
18-24
25.34
55-64
single answer
I won’t buy a product if I disagree with the product makers political or social stance.
385 insights investigated. 7.7 false discoveries expected on average (p value: 0.02).
23.5 %
44.0 %
Among Women, those in the US Northeast picked agree more than those in the US South.
28.8 %
41.4 %
Among people earning $25K-$49K, age affected how
28.6 %
46.2 %
The US Midwest picked neither agree nor disagree
more than the US Northeast.
18-24 year-olds picked neither agree nor disagree more
than those aged 25-34.
38.5%
61.8 %
26.9 %
36.3 %
18-24
45-54
55-64
65+
34.0 %
60.4 %
33.6 %
31.5 %
18-24
45-54
55-64
65+
15
While other results did not conclude with statistically significant differences, insights can be gleaned from the survey
respondents that can help guide brands know whether or not they should take a stand.
Both men and women agreed overall that a brand’s political or social stand did affect them in their purchase behavior. Men
were more likely to agree that their perception of a brand is affected by a stand, but women were more likely to respond they
would not purchase an item because of a brand’s social or political affiliation.
single answer
When I make a purchase I consider the social stance of the company that makes the product I am purchasing.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (592 responses)
Men (642) Women (711) Gender Unknown (153) ALL (1506)
Strongly Agree / Agree 41.9 % (+3.9 / -3.8) 36.6 % (+3.6 / -3.5) 41.2 % (+7.9 / -7.5) 39.3 % (+2.5 / -2.4)
Neither Agree nor Disagree 32.2 % (+3.7 / -3.5) 38.7 % (+3.6 / -3.5) 34.0 % (+7.8 / -7.0) 35.5 % (+2.5 / -2.4)
Disagree / Strongly Disagree 25.9 % (+3.5 / -3.2) 24.7 % (+3.3 / -3.0) 24.8 % (+7.4/ -6.2) 25.2 % (+2.3 / -2.1)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
36.6 % (+3.6 / -3.5)
41.9 % (+3.9 / -3.8)
41.2 % (+7.9 / -7.5)
Male
Female
Unknown
Overall
24.7 % (+3.3 / -3.0)
25.9 % (+3.5 / -3.2)
24.8 % (+7.4 / -6.2)
Overall
Disagree / Strongly disagree (380 responses)
Male
Female
Unknown
16
single answer
I won’t buy a product if I disagree with the product makers political or social stance.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (677 responses)
24.8 % (+3.3 / -3.0)
25.9 % (+3.5 / -3.2)
24.8 % (+7.4 / -6.2)
Overall
Male
Female
Unknown
Male
Female
Unknown
45.3 % (+3.8 / -3.7)
44.0 % (+3.8 / -3.7)
47.6 % (+7.6 / -7.5)
Overall
Men (662) Women (680) Gender Unknown (164) ALL (1506)
Strongly Agree / Agree 44.0 % (+3.8 / -3.7) 45.3 % (+3.8 / -3.7) 47.6 % (+7.6 / -7.5) 45.0 % (+2.5 / -2.5)
Neither Agree nor Disagree 36.0 % (+3.7 / -3.6) 34.1 % (+3.6 / -3.5) 32.9 % (+7.5 / -6.7) 34.8 % (+2.4 / -2.4)
Disagree / Strongly Disagree 20.1 % (+3.2 / -2.9) 20.6 % (+3.2 / -2.9) 19.5 % (+6.7 / -5.3) 20.3 % (+2.1 / -2.0)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
Disagree / Strongly disagree (305 responses)
The survey results indicate that age is also an important
factor in how people report their perceptions toward
brand stance. All age groups were more likely to say
that a company’s political and social stance does affect
their buying behavior and perception of a brand. Across
the board, the older the participant, the more likely they
were to agree that a brand’s political and social stance
affects their perceptions and likelihood of purchase of
specific brands.
The youngest audience, aged 18-24, was least likely to say
that a stance affected their perception or purchase choice
for a particular brand – however, it is important to note that
this audience also had a much higher rate of “none of the
above” responses. Thus, this result may be somewhat less
reliable. Interestingly, respondents age 25-34 were much
more likely to disagree that a brand’s stance would affect
their purchasing decisions than any other age group.
17
single answer
When I make a purchase, I consider the social stance of the company that makes the product I am purchasing.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (592 responses)
36.7 % (+6.4 / -6.0)
32.2 % (+8.8 / -7.7)
38.6 % (+7.5/ -7.0)
Overall
18-24
25-34
35-44
45-54
55-64
65+
Unknown
Age 4 18-24 (121) 25-34 (229) 35-44 (171) 45-54 (307) 55-64 (309) 65+ (209) Unknown (160) ALL (1506)
Strongly Agree 32.2 % 36.7 % 38.6 % 39.7 % 40.5 % 43.1 % 41.3 % 39.3 % Agree (+8.8 / -7.7) (+6.4 / -6.0) (+7.5/ -7.0) (+5.6 / -5.3) (+5.6 / -5.3) (+6.8 / -6.5) (+7.7 / -7.3) (+2.5 / -2.4)
Neither Agree 45.5 % 31.0 % 33.3 % 31.3 % 38.2 % 39.2 % 34.4 % 35.5 % Nor Disagree (+8.9 / -8.6) (+6.3 / -5.6) (+7.4 / -6.6) (+5.4 / -4.9) (+5.5 / -5.2) (+6.8 / -6.4) (+7.6 / -6.9) (+2.5 / -2.4)
Disagree 22.3 % 32.3 % 28.1 % 29.0 % 21.4 % 17.7 % 24.4 % 25.2 % Strongly Disagree (+8.2 / -6.5) (+6.3 / -5.7) (+7.1/ -6.2) (+5.3 / -4.8) (+4.9 / -4.2) (+5.7 / -4.6) (+7.2 / -6.0) (+2.3 / -2.1)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
39.7 % (+5.6 / -5.3)
40.5 % (+5.6 / -5.3)
43.1 % (+6.8 / -6.5)
41.3 % (+7.7 / -7.3)
32.3 % (+6.3 / -5.7)
22.3 % (+8.2 / -6.5)
28.1 % (+7.1 / -6.2)
Overall
18-24
25-34
35-44
45-54
55-64
65+
Unknown
29.0 % (+5.3 / -4.8)
21.4 % (+4.9 / -4.2)
17.7 % (+5.7 / -4.6)
24.4 % (+7.2 / -6.0)
Disagree / Strongly Disagree (380 responses)
18
single answer
I won’t buy a product if I disagree with the product makers political or social stance.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (677 responses)
44.3 % (+6.9 / -6.7)
45.7 % (+7.2 / -7.0)
Overall
18-24
25-34
35-44
45-54
55-64
65+
Unknown
39.3 % (+5.6 / -5.3)
50.0 % (+5.7 / -5.7)
50.2 % (+6.5 / -6.5)
48.3 % (+7.3 / -7.2)
Age 4 18-24 (116) 25-34 (201) 35-44 (184) 45-54 (308) 55-64 (294) 65+ (223) Unknown (180) All (1506)
Strongly Agree 31.9 % 44.3 % 45.7 % 39.3 % 50.0 % 50.2 % 48.3 % 45.0 % Agree (+8.9 / -7.8) (+6.9 / -6.7) (+7.2 / -7.0) (+5.6 / -5.3) (+5.7 / -5.7) (+6.5 / -6.5) (+7.3 / -7.2) (+2.5 / -2.5)
Neither Agree 46.6% 30.3 % 34.8 % 37.7 % 32.0 % 35.0 % 31.7 % 34.8 % Nor Disagree (+9.0 / -8.8) (+6.7 / -5.9) (+7.1 / -6.5) (+5.5 / -5.2) (+5.5 / -5.1) (+6.5 / -6.0) (+7.1 / -6.4) (+2.4 / -2.4)
Disagree 21.6 % 25.4 % 19.6 % 23.1 % 18.0 % 14.8 % 20.0 % 20.3 % Strongly Disagree (+8.3 / -6.5) (+6.4 / -5.5) (+6.3 / -5.1) (+5.0 / -4.4) (+4.8 / -4.0) (+5.3 / -4.1) (+6.4 / -5.2) (+2.1 / -2.0)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
25.4 % (+6.4 / -5.5)
21.6 % (+8.3 / -6.5)
19.6 % (+6.3/ -5.1)
Overall
18-24
25-34
35-44
45-54
55-64
65+
Unknown
23.1 % (+5.0 / -4.4)
18.0 % (+4.8 / -4.0)
14.8 % (+5.3 / -4.1)
20.0 % (+6.4 / -5.2)
Disagree, Strongly Disagree (305 Responses)
31.9 % (+8.9 / -7.8)
19
As with other factors, respondents all over the United States were more likely to agree with the notion that their brand
perceptions and buying habits are affected by a company’s political and social stance. However, respondents in the Northeast
were far more likely than their counterparts in other parts of the country to say that they would not purchase an item from a
brand with a political or social stance they disagreed with. Respondents in the Midwest were more evenly split, highlighting
a geographical difference that should not be ignored by marketers.
single answer
When I make a purchase, I consider the social stance of the company that makes the product that I am purchasing.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (592 responses)
Overall
35.3 % (+4.9 / -4.6)
42.3 % (+6.4 / -6.2)
40.2 % (+4.2 / -4.1)
40.2 % (+5.2 / -5.0)
46.2 % (+24.7 / -22.9)
Disagree / Strongly disagree (380 responses)
28.2 % (+4.7 / -4.3)
22.2 % (+5.8 / -4.9)
26.5 % (+3.9 / -3.6)
22.8 % (+4.7 / -4.1)
7.7 % (+25.6 / -6.3)
The US Midwest
The US Northeast
The US South
The US West
Unknown
The US Midwest
The US Northeast
The US South
The US West
Unknown
The US The US The US The US Geography ALL (1506) Midwest (380) Northeast (234) South (528) West (351) Unknown (13)
Strongly Agree 35.3 % 42.3 % 40.2 % 40.2 % 46.2 % 39.3 % Agree (+4.9 / -4.6) (+6.4 / -6.2) (+4.2 / -4.1) (+5.2 / -5.0) (+24.7 / -22.9) (+2.5 / -2.4)
Neither Agree 36.6 % 35.5 % 33.3 % 37.0 % 46.2 % 35.5 % Nor Disagree (+5.0 / -4.7) (+6.3 / -5.9) (+4.1 / -3.9) (+5.2 / -4.9) (+24.7 / -22.9) (+2.5 / -2.4)
Disagree 28.2 % 22.2 % 26.5 % 22.8 % 7.7 % 25.2 % Strongly Disagree (+4.7 / -4.3) (+5.8 / -4.9) (+3.9 / -3.6) (+4.7 / -4.1) (+25.6 / -6.3) (+2.3 / -2.1)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
20
single answer
I won’t buy a product if I disagree with the product makers political or social stance.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (677 responses)
Overall
43.4 % (+5.0 / -4.9)
51.9 % (+6.7 / -6.8)
44.2 % (+4.3 / -4.2)
43.8 % (+4.9 / -4.8)
42.9 % (+24.6 / -21.5)
17.6 % (+4.2 / -3.5)
18.9 % (+5.9 / -4.8)
22.7 % (+3.8 / -3.4)
20.0 % (+4.2 / -3.6)
28.6 % (+26.1 / -16.9)
The US The US The US The US Geography All (1506) Midwest (380) Northeast (206) South (511) West (395) Unknown (14)
Strongly Agree 43.4 % 51.9 % 44.2 % 43.8 % 42.9 % 45.0 % Agree (+5.0 / -4.9) (+6.7 / -6.8) (+4.3 / -4.2) (+4.9 / -4.8) (+24.6 / -21.5) (+2.5 / -2.5)
Neither Agree 38.9 % 29.1 % 33.1 % 36.2 % 28.6 % 34.8 % Nor Disagree (+5.0 / -4.8) (+6.5 / -5.8) (+4.2 / -3.9) (+4.9 / -4.6) (+26.1 / -16.9) (+2.4 / -2.4)
Disagree 17.6 % 18.9 % 22.7 % 20.0 % 28.6 % 20.3 % Strongly Disagree (+4.2 / -3.5) (+5.9 / -4.8) (+3.8 / -3.4) (+4.2 / -3.6) (+26.1 / -16.9) (+2.1 / -2.0)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
Overall
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (677 responses)
Disagree / Strongly disagree (305 responses)
The US Midwest
The US Northeast
The US South
The US West
Unknown
The US Midwest
The US Northeast
The US South
The US West
Unknown
21
Respondents in rural areas seem to be more likely to not purchase an item from a brand they disagree with than those
in suburban and urban areas. Suburban, rural and urban respondents all were very likely to consider a brand’s stance
when making a purchase. Interestingly, respondents with unspecified geographies were more likely to say that they did not
consider a brand’s stance when making a purchase – one of the very few segments in the survey to do so.
single answer
When I make a purchase I consider the social stance of the company that makes the product I am purchasing.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (592 responses)
Overall
Urban
Rural
Suburban
Unknown
41.1 % (+5.0 / -3.9)
37.2 % (+6.6 / -6.2)
39.0 % (+3.7 / -3.6)
22.7 % (+20.7 / -12.6)
Overall
26.4 % (+3.7 / -3.4)
24.7 % (+6.2 / -5.3)
24.3 % (+3.3 / -3.1)
27.3 % (+20.9 / -14.1)
Urban
Rural
Suburban
Unknown
Disagree / Strongly disagree (305 responses)
Urban (579) Rural (215) Suburban (690) Unknown (22) All (1506)
Strongly Agree 41.1 % 37.2 % 39.0 % 22.7 % 39.3 % Agree (+5.0 / -3.9) (+6.6 / -6.2) (+3.7 / -3.6) (+20.7 / -12.6) (+2.5 / -2.4)
Neither Agree 32.5 % 38.1 % 36.7 % 50.0 % 35.5 % Nor Disagree (+3.9 / -3.7) (+6.6 / -6.2) (+3.7 / -3.5) (+19.3 / -19.3) (+2.5 / -2.4)
Disagree 26.4 % 24.7 % 24.3 % 27.3 % 25.2 % Strongly Disagree (+3.7 / -3.4) (+6.2 / -5.3) (+3.3 / -3.1) (+20.9 / -14.1) (+2.3 / -2.1)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
22
single answer
I won’t buy a product if I disagree with the product makers political or social stance.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (677 responses)
Urban DensityUrban Areas (562) Rural Areas (221) Suburban Areas (686) Unknown (37) All (1506)
Strongly Agree 45.9 % 49.3 % 43.4 % 32.4 % 45.0 % Agree (+4.1 / -4.1) (+6.5 / -6.5) (+3.7 / -3.7) (+16.1 / -12.8) (+2.5 / -2.5)
Neither Agree 32.9 % 33.9 % 36.6 % 35.1 % 34.8 % Nor Disagree (+4.0 / -3.8) (+6.5 / -5.9) (+3.7 / -3.5) (+16.1 / -13.3) (+2.4 / -2.4)
Disagree 21.2 % 16.7 % 20.0 % 32.4 % 20.3 % Strongly Disagree (+3.6 / -3.2) (+5.5 / -4.3) (+3.2 / -2.8) (+16.1 / -12.8) (+2.1 / -2.0)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
Strongly agree / Agree (677 responses)
Overall
Urban
Rural
Suburban
Unknown
45.9 % (+4.1 / -4.1)
49.3 % (+6.5 / -6.5)
43.4 % (+3.7 / -3.7)
32.4 % (+16.1 / -12.8)
Overall
21.2 % (+3.6 / -3.2)
16.7 % (+5.5 / -4.3)
20.0 % (+3.2 / -2.8)
32.4 % (+16.1 / -12.8)
Urban
Rural
Suburban
Unknown
Disagree / Strongly disagree (305 responses)
23
Respondents with the highest reported income levels were less likely than their counterparts with lower reported incomes to
say that a brand’s stance affected their purchase decisions. However, respondents with incomes between $70,000-99,000
per year were more likely to say that they would not buy a product from a brand they disagreed with. Those with income
levels between $25,000- $49,000 per year were almost as likely as their higher-earning counterparts to be affected by a
brand’s stance.
single answer
I won’t buy a product if I disagree with the product makers political or social stance.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (677 responses)
People Earning 4 $0-24K (104) $25-49K (861) $50-74K (440) $75-99K (71) $100-149K (15) $150K+ (3) Unknown (12) All (1506)
Strongly Agree 40.9 % 44.7 % 45.0 % 47.9 % 33.3 % 33.3 % 25.0 % 45.0 % Agree (+9.5 / -9.4) (+3.3 / -3.3) (+4.7 / -4.6) (+11.4 / -11.2) (+25.0 / -18.2) (+45.9 / -27.2) (+28.2 / -16.1) (+2.5 / -2.5)
Neither Agree 26.9 % 34.4 % 36.8 % 33.8 % 53.3 % 33.3 % 41.7 % 34.8 % Nor Disagree (+9.2 / -7.6) (+3.2 / -3.1) (+4.6 / -4.4) (+11.6 / -9.9) (+21.9 / -23.2) (+45.9 / -27.2) (+26.4 / -22.3) (+2.4/ -2.4)
Disagree 24.0 % 20.9 % 18.2 % 18.3 % 13.3 % 33.3 % 33.3 % 20.3 % Strongly Disagree (+9.0 / -7.2) (+2.8 / -2.6) (+3.9 / -3.3) (+10.5 / -7.3) (+24.5 / -9.6) (+45.9 / -27.2) (+27.6 / -19.5) (+2.1 / -2.0)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
Overall
$0-24K
$25-49K
$50-74K
$75-99K
$100-149K
$150K+
Unknown
40.9 % (+9.5 / -9.4)
44.7 % (+3.3 / -3.3)
45.0 % (+4.7 / -4.6)
47.9 % (+11.4 / -11.2)
33.3 %(+25.0 / -18.2)
33.3 % (+45.9 / -27.2)
25.0 % (+28.2 / -16.1)
Disagree / Strongly disagree (305 responses)Overall
$0-24K
$25-49K
$50-74K
$75-99K
$100-149K
$150K+
Unknown
24.0 % (+9.0 / -7.2)
20.9 % (+2.8 / -2.6)
18.2 % (+3.9 / -3.3)
18.3 % (+10.5 / -7.3)
13.3 % (+24.5 / -9.6)
33.3 % (+45.9 / -27.2)
33.3 % (+27.6 / -19.5)
24
single answer
When I make a purchase, I consider the social stance of the company that makes the product I am purchasing.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Strongly agree / Agree (592 responses)
People Earning 4 $0-24K (109) $25-49K (887) $50-74K (405) $75-99K (80) $100-149K (18) $150K+ Unknown (7) All (1506)
Strongly Agree 41.3 % 40.5 % 36.0 % 42.5 % 33.3 % Insufficient 28.6 % 39.3 % Agree (+9.4 / -8.8) (+3.3 / -3.2) (+4.8 / -4.5) (+10.9 / -10.2) (+22.9 / -17.1) Data (+35.5 / -20.3) (+2.5 / -2.4)
Neither Agree 27.5 % 33.5 % 41.0 % 36.2 % 44.4 % Insufficient 57.1 % 35.5 % Nor Disagree (+9.0 / -7.5) (+3.2 / -3.0) (+4.9 / -4.7) (+10.9 / -9.7) (+21.8 / -19.9) Data (+27.0 / -32.1) (+2.5 / -2.4)
Disagree 31.2 % 26.0 % 23.0 % 21.2 % 22.2 % Insufficient 14.3 % 25.2 % Strongly Disagree (+9.2 / -7.9) (+3.0 / -2.8) (+4.3 / -3.8) (+10.2 / -7.5) (+23.0 / -13.2) Data (+37.0 / -11.7) (+2.3 / -2.1)
Methodology conducted by Google Consumer Surveys, March 20, 2013-March 30, 2013 and based on 1506 online responses. Sample: National adult internet population.
Results for all respondents. Weighted data unavailable for this view. (1506 responses)
Overall
41.3 % (+9.4 / -8.8)
40.5 % (+3.3 / -3.2)
36.0 % (+4.8 / -4.5)
42.5 % (+10.9 / -10.2)
33.3 % (+22.9 / -17.1)
28.6 % (+35.5 / -20.3)
Disagree / Strongly disagree (380 responses)
Overall
31.2 % (+9.2 / -7.9)
26.0 % (+3.0 / -2.8)
23.0 % (+4.3 / -3.8)
21.2 % (+10.2 / -7.5)
22.2 % (+23.0 / -13.2)
Insufficient Data
14.3 % (+27.0 / -32.1)
Insufficient Data
$0-24K
$25-49K
$50-74K
$75-99K
$100-149K
$150K+
Unknown
Disagree / Strongly disagree (380 responses)
$0-24K
$25-49K
$50-74K
$75-99K
$100-149K
$150K+
Unknown
25
ANSWERS & ANALYSIS
When brands take a controversial
stand, how is their bottom line
affected?
Do consumers say that a brand’s
social or political stance affects their
propensity to buy that brand’s
product or service?
What items should a brand consider
before taking a stand on a
controversial subject?
1 2 3
The answer to question number 2, as we stated above,
is yes for a majority (albeit, not a statistically significant
majority). If we only look at this fact, traditional public
relations advice holds true. Brands shouldn’t get involved
in controversial political and social issues – no matter what
they truly believe.
But, of course, there’s more to the story. In regards to
question number 1, as we saw from the case studies,
some companies, like Chick-fil-A and J. C. Penney, have
been rewarded for their stances on sticky issues. Others,
like Susan G. Komen, found out that its stance hurt both its
brand perception and its bottom line. Others, like Starbucks
and Hobby Lobby, don’t know exactly how they were
affected, if at all. So, the answer to question number one
appears to be a confident “no idea.” However, upon further
study, we think the answer to number one is actually “it
depends.”
Perhaps our thoughts are best illustrated by the following
fictional parable…
Based on our research, it is apparent that American
consumers are likely to consider a brand’s political stance
when making a purchase. The majority of Americans say
they won’t purchase a product if they disagree with the
brand’s stance. So, common sense would state that brands
should stay away from taking a stand on controversial
subjects, right?
Not so fast. We’re getting ahead of ourselves. To recap,
the purpose of this study was to answer the following
questions:
26
There were two companies selling a very similar
product. These companies were very competitive with
each other, fighting for shelf space at all the major
stores, battling each other for superior engagement
in social media and competing for rankings in the
major search engines. Company A’s religious beliefs
led them to take a public stand on a potentially
controversial issue. Company B, seeing this stand,
put their marketing research company to work. The
marketing research company concluded that 65% of
the consumer base disagreed with the stand taken
by the competing company. More than 20% of the
consumer base stated they had no opinion on the
matter at all. Therefore, Company B decides to
remain quiet on the issue.
Company A was criticized in the press for taking a
stance. Advocates against Company A’s cause were
quick to organize a boycott that boasted more than
100,000 people. Company A stuck to their stance
and hoped for the best. Then a funny thing started
to happen.
Company B noticed that Company A was suddenly
beating them in all of the major search engines for
their most competitive keywords. All of the press and
negative attention had created links to Company A’s
website, thus making it seem more relevant in the
algorithms. Also, as the controversy continued and
press died down, proponents of Company A’s stance
began engaging with the company, thanking them for
their stance, and creating engagement opportunities
that the social media staff at Company B could
only dream about. This occurred simply because
Company A had something in common with these
fans that they could talk about.
Several stores pulled Company A’s products from
the shelf for a period of time, but as the controversy
waned, fewer stores kept to that ban – especially after
Company A asked their newfound fans to request
their product be put back on the shelf.
Company B’s sales remained steady during the
quarter. Company A saw an initial dip in sales – but
then suddenly sales began to climb. Internet sales
from search engine and social media referrals
reached record levels 3 months after the stand
was taken.
When it was time for earnings reports from both
companies, Company B reported a solid quarter that
met most analyst expectations and expected the
same the next quarter.
Whereas Company A’s investor relations team giddily
wrote about the second half of the quarter’s record
earnings, and the entire company looked forward to
even better news in the next quarter.
onCe uPon a tiMe
27
It’s easy to see the audience dynamics at play in the
hypothetical situation above. After an initial public outcry,
those opposed to Company A’s stand became complacent.
The emotional passion behind the stand was gone and
most went back to purchasing whichever product they
preferred before. Sure, some switched to Company B and
never came back – but the fervent supporters of Company
A’s stand were compelled to move to Company A. The
ripple effect of Company A’s stand created attention – albeit
negative attention – online, which lead to links and social
media mentions. Those items helped propel Company A’s
digital presence ahead of Company B.
So why did Company B lose market share to Company A,
when the research and traditional public relations common
sense said that the prudent move was to remain quiet on
the controversial subject? Simple math mixed with complex
emotions.
If Company A’s market research department had dug
a little deeper, they would have realized that while most
consumers were against Company A’s stance, their zeal
for the cause was not nearly as strong as the religion-
fueled conviction of the cause’s supporters. Of the 65% of
consumer who stated that they were against Company A’s
cause, only a portion, let’s assume 35% percent, actually
stopped using Company A’s product as a result of the
controversy. The 20% that didn’t care about the controversy
continued to use the same product they always had.
In this study, conveniently that population was split right
down the middle. All of the consumers (15% overall) that
supported Company A’s stance began using Company A’s
products. Let’s assume that before the controversy, the
overall consumer base was growing at a rate of 5% per
month, with half of the new customers going to Company A
and half going to Company B. After Company A took their
stand, 15% of the new customer base automatically sided
with Company A because of their stance. Some of the new
customers, let’s say 5%, chose Company B because they
disagreed with Company A’s stance and remembered the
controversy even after it wasn’t in the news anymore. And
because of Company A’s newfound Internet marketing
success, 70% of the remaining new customer base
consistently went to Company A instead of company B.
Also, just one month after the controversy, because of
apathy, Company A regained 30% of the initial customers
they lost initially because of their stand.
28
Company A Company B Customers Customers
Before Stand 50,000 50,000
Immediately After Stand 40,000 60,000
1 Month after Stand 49,550 55,450
6 Months after Stand 67,300 62,700
1 year after stand 88,600 71,400
did you follow the Math?
Don’t worry, we didn’t either. So we created this table to
illustrate the market share of Company A and Company B over
time. We have assumed an overall initial customer base of
100,000 customers.
As you can see from the above table, after 1 year Company
A’s stand actually helped them obtain 55.3% of the market
share while Company B dropped to 44.7% market share.
The hypothetical situation above, however, doesn’t always
happen. Just ask the people at the Komen foundation.
In the situation above, Company A could have just as
easily have lost market share if the opposition was more
passionate than those who supported their cause. Also, if
the industry saw lower growth than expected, Company
A could have been looking at significant losses in both
revenue and market share.
So, what should a company look at before deciding a
potentially controversial political or social stand?
Below we’ve created a series of questions we believe
that every company, regardless of size, should take into
account when considering whether or not to take a stand.
One caveat: We are not condoning any specific moral or
ethical point of view – our observations are from a strictly
bottom-line point of view. In other words, if your company
takes a stand, are you likely to lose money, remain steady,
or actually gain market share and revenue?
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what does your current customer base believe? At
the heart of most modern content marketing strategy
is audience research. Who are your customers? What
are they like? A number of affordable tools are available
to companies to help ascertain this information. For
instance, at WrightIMC we partner with a company called
Datalogix. Datalogix has many tools to help understand
a company’s audience. One of their basic tools, called
Insight Connect, allows us to upload a list of e-mail
addresses (for instance, a current company customer list)
and find out a plethora of anonymized information about
the group, including income, race, buying habits and
political affiliations.
While this tool is relatively inexpensive, there are other
ways to understand your audience that don’t cost anything
more than the time you put into the research. For instance,
sending a basic survey to your customers through a tool like
Survey Monkey is either free or has a very nominal cost.
Surveys are great tools to gauge audience perceptions –
however, it is important to make sure that you are asking
the right questions in the right ways. It’s very easy to skew
results merely by the composition of your question or if the
survey’s participation sample is skewed because of hot-
button topics (those who are passionate about a subject
are almost always more likely to participate than those
who are more apathetic to the cause).
By far, the most basic way to understand your audience is
through your own interactions with them, which includes
interactions on your website. Post a curated article on
your blog and gauge reaction through both direct contact
and analytics analysis. Visit the social media pages of
your customers and understand what their passions
are. This can be more difficult for companies with a
large client base, but armed with a list of customers
and a solid questionnaire, low-level employees can
quickly create a picture of the customer base based
on observation alone. Don’t forget to look at your own
website analytics.
Although you may not be able to gain direct knowledge
of your customer’s perceptions through true analytics,
use the data from our survey to match the geography and
other demographics to what people said in our survey.
For the full survey data, just e-mail us at research@
wrightimc.com.
Taking social listening to the next level is also appropriate
for larger companies. Using tools like Radian6, Trackur,
MutualMind or Netbase (all of which can become
relatively expensive, although Trackur does have free and
low-cost versions) and many others can tell you, through
keyword analysis, the types of things your customers are
interested in.
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what does the overall population think of the stance
we’re about to take? When taking a stance, especially
if the stance is emotional, it’s easy to discount popular
opinion. But, that could be a mistake. When it comes to
hot-button topics where emotions run strong, it’s very easy
for a company to make enemies. Even if the customer base
strongly supports the stance, a company can find itself with
activists trying to wreak havoc on the company through
sabotage, watchdog groups, and political pressure.
Unpopular stances can have long-term effects for a
company, and it’s important to understand what those
may be. This is especially true in industries that have
strict compliance rules or are highly regulated. Having a
regulator or compliance officer who disagrees with your
company’s stance can be bad for the bottom line. This is
also true for politicians creating legislation in order to win
over the popular vote of his or her constituency.
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what do your employees think? When taking a
controversial stance, it’s important to have internal
support. Every company must realize that when they
take a stance and become associated with an issue, their
employees become associated with that issue as well. If
valued employees don’t agree with the stance, morale and
productivity can suffer. On the flip-side, if employees are
behind the company’s reasoning, loyalty and productivity
can skyrocket.
Before a company takes a stance, it’s extremely important
that the first audience they alert is internal. There’s nothing
worse, to most people, than reading in the paper that their
employer has taken a controversial stance – especially
when that stance is against the employee’s personal
beliefs. Simple surveys of the employees, as well as
solid internal communications that explain the company’s
stance, are essential tools to companies that decide to
take a stand – or, in many cases companies that decide
not to take a stand on issues that are important to the
personnel base.
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do i have the resources to take a stand? Taking a
controversial stand can be taxing on an organization.
We’ve already talked about internal and employee
communication, but what about the public outcry? Is
your company equipped to handle the response? Do you
have the personnel or agency support to field potentially
thousands of irate phone calls or nasty e-mails? Of
course, many companies that take a stance see relatively
little feedback, but others become overwhelmed. If the
stance your company takes distracts from your core
purpose – which for most companies is to make money
– it’s important to carefully weigh the risks vs. benefits of
the stance.
5if we take a stance, how can we make sure we get the
most out of it? Taking a stance and then backing down
after receiving criticism is rarely good for a company. It
shows that either the company didn’t really know what
it thought, or they traded their principles for the bottom
line. This normally doesn’t sit well with either side of the
audience. So, when taking a stance, in our opinion is it
is important to stick with your guns wherever possible.
Compromise is not necessarily negative, as Chick-
fil-A illustrated by taking a closer look at some of the
organizations they were donating to. But, outright reversal
on a position frequently makes a company look weak –
as was the case with Susan G. Komen. The benefits of
taking a stand are numerous from an interactive marketing
perspective, specifically an SEO perspective. More
attention means more links – usually high-quality links.
And, links are what makes a site successful from and SEO
point of view. The old adage “I don’t care what you say, just
spell my name right” certainly applies.
Making sure that your site is optimized for search, and your
social media channels are ready to respond, is paramount
before taking any stand. Interactive marketing doesn’t
live in a bubble, and can’t always make up for negative
perceptions. However, by performing simple optimization
steps, you can be assured that your online visibility will
be greater immediately after taking a stand. What most
companies need ask is, “Will that attention drive additional
sales?” Sometimes it does, depending upon the perception
of the new visitors. However, if most of the visitors view
your company’s position with a highly negative emotion, all
the attention in the world will just eat up bandwidth and not
increase sales.
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CONCLUSIONThere are myriad factors to consider when deciding if your
company should take a stand. The research in this report
merely scratches the surface. Much more research should
be done before a true decision framework can be created
for companies deciding if they should stand on a particular
social or political issue. Potential audience factors, such
as gender, geography, income and urban density can
certainly help some companies make a preliminary
decision. However, each customer base is different. Just
because the majority of a gender or geographic region
supports a cause doesn’t mean your customers do.
It’s imperative that brands understand their audience.
Understanding your base has many other benefits as well
including knowing how to better market to your customers
and potential customers.
Bottom line – if you are thinking of the bottom line, taking
a stand can be profitable or it can put you in the red. It all
depends upon your audience. Of course, if your personal
and moral ethics dictate you take a stand, sometimes
sleeping at night is more important than the bottom line.
But, every company has to decide that for themselves. And
since most companies are cognizant that their bottom line
affects the jobs and financial well-being of more than just
the decision-makers at the top, we don’t foresee an influx
of brands standing up for what they believe unless the
issue is a slam dunk with its audience. Our hope, however,
is that this report shows that it can be OK to take a stand
if need be – and it can actually be profitable if the stand is
right and it’s done properly.