Monday, January 30, 2012

Consumers Will Avoid Purchasing, If They Don't Like The Parent Company Behind The Product

A newly released study from Weber Shandwick explores the connection between corporate and product brands. Based on a survey of 1,375 consumers and 575 executives of $500MM+ companies from four global markets (Brazil, China, the US and the UK), the study shows that perceptions of a corporate brand can truly affect product purchases:

  • 70 percent of consumers say they avoid buying a product if they do not like the company behind the product
  • 40 percent stop purchasing the product when they see a disconnect between the product and parent brand

The web plays an integral role in this delicate decision-making process. Of those consumers surprised to find out that a product they like is made by a company they do not like:

  • 34 percent will go online to find what other products the company makes
  • 19 percent share or forward information about the company
  • 17 percent make negative comments about the product or company to others
  • 15 percent post a comment online about the brand and the company

Where do consumers get these ideas about corporate brands? The web's influence is almost as strong as offline word of mouth:

  • Nine in 10 (88 percent) say they are influenced by what people say
  • Eight in 10 point to online reviews (83 percent) and search results (81 percent)

Consumer opinions have a direct impact on sales and also on companies' market value. Interviewed executives said they would attribute 60% of their firms' value to these companies' reputation. In other words, online buzz can have an impact on a company's evaluation. But reputation is a holistic concept--whether online or offline, at the product or corporate-level, it needs to be consistent and positive. 

Posted via email from dotwom's posterous

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