2017 Edelman Earned Brand

1. 2017 EDELMAN EARNED BRAND STUDY BEYOND NO BRAND’S LAND J U N E 2 0 1 7

2. E D E L M A N E A R N E D B R A N D THE WORLD WANTS MORE FROM BRANDS 2 Sources: 12017 Edelman Trust Barometer. Q672-675, 678-680, 688-690. For details on how the “system failing” measure was calculated, please refer to the Technical Appendix. 22017 Edelman Earned Brand study. Q17. Please indicate how much you agree or disagree with the following statements. (Top 4 Box, Agree.) 14-country global total. 53% 2017 EDELMAN TRUST BAROMETER 2017 EDELMAN EARNED BRAND 51%“The system is failing me.”1 Believe brands can do more to solve social ills than government.2 SINCE I DO NOT TRUST INSTITUTIONS TO STAND UP FOR ME… …I EXPECT BRANDS TO STAND WITH ME.

3. E D E L M A N E A R N E D B R A N D 3 BRANDS ARE TRYING TO ANSWER THE CALL

4. E D E L M A N E A R N E D B R A N D THERE IS A LOT AT STAKE FOR THE CONSUMER-BRAND RELATIONSHIP 4 BUYING LOYALTY ADVOCACY DEFENSE SOME GAIN SOME LOSE

5. E D E L M A N E A R N E D B R A N D 2017 EDELMAN EARNED BRAND STUDY 5 14,000 RESPONDENTS 1,000 per country, nationally representative of age, gender, and region based on most recent country census data. 14 COUNTRIES Online survey in Australia, Brazil, Canada, China, France, Germany, India, Japan, Mexico, The Netherlands, Singapore, UAE, U.K., and the U.S. SURVEY TIMING March 31 – April 24, 2017 THE EDELMAN BRAND RELATIONSHIP INDEX Measures the strength of the relationship consumers have with the favorite brand they buy across 7 dimensions. Measures relationships across 18 brand categories. SOCIAL LISTENING We listened to consumer conversations on social media to understand the societal issues that matter most to consumers in those countries to help inform our analysis. Unless otherwise specified, all data is from the 2017 Edelman Earned Brand study. Full explanations of the Edelman Brand Relationship Index and other analyses performed, along with detailed sample and margin of error information, can be found in the Technical Appendix. METHODOLOGY GLOBAL SURVEY 2ND YEAR

6. E D E L M A N E A R N E D B R A N D SHARED BELIEFS ARE THE MOST POWERFUL DRIVER OF COMMITMENT 6 From Involved to Committed, brand attributes that increase the most WE SHARE VIEWS ON CONTROVERSIAL SOCIETAL AND POLITICAL ISSUES PART OF MY SOCIAL MEDIA LANDSCAPE HELPS ME EXPRESS SOMETHING IMPORTANT ABOUT MYSELF Source: 2017 Edelman Earned Brand study. Q13. Still thinking of your favorite brand in this category, what is it about this brand that makes it special to you? Using a nine-point scale that goes from not at all important to extremely important, please indicate how important each of the following was in building the special relationship you have with this brand. (Top 4 Box, Important.) 14-country global total. See Technical Appendix for a full explanation of how the five relationship stages and the Edelman Brand Relationship Index were built. 37 Edelman Brand Relationship Index 2017 Global Average STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP INDIFFERENT INTERESTED INVOLVED INVESTED COMMITTED

7. E D E L M A N E A R N E D B R A N D BRANDS ARE FALLING SHORT 7 SIGNIFICANT DECLINES IN THREE OF SEVEN DIMENSIONS OF THE CONSUMER-BRAND RELATIONSHIP Source: 2017 Edelman Earned Brand study. Dimensions. 13-country global total. See Technical Appendix for a full explanation of the dimensions of the consumer-brand relationship. 2016 VS. 2017 ACTS WITH PURPOSE “This brand is one way I actively support causes.” INSPIRES SHARING, INVITES PARTNERSHIP “I want to be associated with what this brand is doing.” EMBODIES UNIQUE CHARACTER “The brand embodies values I can relate to.” -3 -2 -3 CONSUMERS LESS CONVINCED THAT BRANDS ARE WITH THEM.

8. E D E L M A N E A R N E D B R A N D LESS COMMITMENT 8 CHANGE FROM 2016 TO 2017 IN THE INVESTED AND COMMITTED LEVELS Source: 2017 Edelman Earned Brand study. Relationship levels. 13-country global total. See Technical Appendix for a full explanation of how the five relationship stages were built. 8% INDIFFERENT 33% INTERESTED 24% INVOLVED 25% INVESTED 10% COMMITTED STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP -1 -2 PERCENT OF CONSUMER-BRAND RELATIONSHIPS AT EACH LEVEL

9. 9 NO BRAND’S LAND Brands that ignore this new normal will find themselves trapped in

10. E D E L M A N E A R N E D B R A N D 10 CONSUMERS WANT TO KNOW: ARE YOU WITH ME?

11. E D E L M A N E A R N E D B R A N D A BRAND’S STAND NOW MATTERS MORE 11 Source: 2017 Edelman Earned Brand study. NET: [Q60. How many products are you currently boycotting/not buying, that you might otherwise buy, solely because you do not like their position on a social or political issue? Q62. How many products are you currently buying, that you would not otherwise buy, solely because you like their position on a social or political issue? (Net of 1 or more from Q60 and Q62)] NET: [Q61. Is that number higher or lower than three years ago? Q63. Is this number higher or lower than three years ago? (Net of “Higher today” from Q61 and Q63)] 14-country global total. 57% Are buying or boycotting brands based on the brand’s position on a social or political issue. 30% Are buying or boycotting more than three years ago.

12. E D E L M A N E A R N E D B R A N D HALF SAY THEY ARE BELIEF-DRIVEN BUYERS 12 DO YOU CHOOSE, SWITCH, AVOID OR BOYCOTT A BRAND BASED ON ITS STAND ON CONTROVERSIAL SOCIETAL ISSUES? Source: 2017 Edelman Earned Brand study. Belief-driven buying segments. 14-country global total. See Technical Appendix for a full explanation of how belief-driven buying was measured. 50% SPECTATORS Rarely buy on belief or punish brands for taking a stand. 25% LEADERS Have strongly-held, passionate beliefs. The brands they buy are one important way they express those beliefs. 25% JOINERS Depending on the issue and the brand, they will change their buying behavior based on the brand’s stand. 50% BELIEF-DRIVEN BUYERS

13. E D E L M A N E A R N E D B R A N D 28 26 26 21 25 34 25 16 53 60 51 37 Gen Z (18-22) Millennials (23-37) Gen X (38-51) Boomers (52-71) Leaders Joiners BELIEF-DRIVEN BUYERS ARE YOUNGER 13 PERCENT IN EACH GENERATION WHO ARE BUYING BASED ON SHARED BELIEFS Source: 2017 Edelman Earned Brand study. Belief-driven buying segments. 14-country global total, by generation. See Technical Appendix for a full explanation of how belief-driven buying was measured. MILLENNIALS MOST LIKELY TO BUY BASED ON SHARED BELIEFS IN India 75% China 73% UAE 67% U.S. 66% Mexico 63%

14. E D E L M A N E A R N E D B R A N D 27 23 26 22 25 31 49 48 57 Low Income Middle Income High Income Leaders Joiners BELIEF-DRIVEN BUYERS ARE HIGHER-INCOME 14 PERCENT IN EACH INCOME GROUP WHO ARE BUYING BASED ON SHARED BELIEFS Source: 2017 Edelman Earned Brand study. Belief-driven buying segments. 14-country global total, by income. See Technical Appendix for a full explanation of how belief-driven buying was measured. Low Income = bottom 25%; Middle Income = middle 50%; High Income = top 25% HIGH-INCOME CONSUMERS MOST LIKELY TO BUY BASED ON SHARED BELIEFS IN China 70% UAE 69% Mexico 67% India 62% U.S. 62%

15. E D E L M A N E A R N E D B R A N D CONSUMERS BUY BASED ON SHARED BELIEFS AROUND THE WORLD 15 PERCENT WHO ARE BUYING BASED ON SHARED BELIEFS IN EACH COUNTRY Source: 2017 Edelman Earned Brand study. Belief-driven buying segments. 14-country global total, by country. See Technical Appendix for a full explanation of how belief-driven buying was measured. 25 37 24 26 26 23 31 29 17 20 21 28 18 23 22 25 36 41 36 32 33 22 21 30 20 19 11 19 14 14 50 73 65 62 58 56 53 50 47 40 40 39 37 37 36 Global 14 China India UAE Mexico Brazil Singapore France U.S. Australia Canada Japan U.K. Germany The Netherlands Joiners Leaders

16. E D E L M A N E A R N E D B R A N D WITH BELIEF-DRIVEN BUYERS, SILENCE IS NOT AN OPTION 16 Source: 2017 Edelman Earned Brand study. Q17. Please indicate how much you agree or disagree with the following statements. (Top 4 Box, Agree.) 14-country global total, by belief-driven buyers. See Technical Appendix for a full explanation of how belief-driven buying was measured. OF BELIEF-DRIVEN BUYERS Will not buy a brand because it stayed silent on an issue it had an obligation to address65%

17. E D E L M A N E A R N E D B R A N D 17 IF YOU SHARE THEIR BELIEFS, THEY WILL REWARD YOU

18. E D E L M A N E A R N E D B R A N D GET IT RIGHT, AND WIN NEW BUYERS 18 OF BELIEF-DRIVEN BUYERS Bought a brand for the first time because of its position on a controversial issue Source: 2017 Edelman Earned Brand study. Q17. Please indicate how much you agree or disagree with the following statements. (Top 4 Box, Agree.) 14-country global total, by belief-driven buyers. See Technical Appendix for a full explanation of how belief-driven buying was measured. BRANDS GAIN 10x more than from Spectators 67%

19. E D E L M A N E A R N E D B R A N D BUYING ON BELIEF IS A FAST TRACK TO A STRONGER RELATIONSHIP 19 Source: 2017 Edelman Earned Brand study. Brand Relationship Index. 14-country global total, by belief-driven buying segments. See Technical Appendix for a full explanation of how the five relationship stages, the Edelman Brand Relationship Index and belief-driven buying were built and measured. 29 Edelman Brand Relationship Index STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP SPECTATORS 46 BELIEF-DRIVEN BUYERS INDIFFERENT INTERESTED INVOLVED INVESTED COMMITTED

20. E D E L M A N E A R N E D B R A N D SPEAK UP, AND THEY WILL BUY LOYALLY 20 OF BELIEF-DRIVEN BUYERS Buy only that brand Buy more often Buy first Stay loyal when a brand supports their position on an issue vs. staying silent Source: 2017 Edelman Earned Brand study. Q54. Now consider two brands. You like their products and services both equally, but one brand agrees with and supports (with time, money and considerable resources) your position on the issue you mentioned above. The second brand is silent on this issue. It has given you no indication of where its stands. For each of the behaviors listed below, please indicate how much more likely you would be take this action on behalf of the brand that supports your position versus the one that you like equally well but is silent on the issue. (Top 2 Box, Much more and extremely more likely.) (Average of 4 items.) Question asked of half the sample.14-country global total, by belief-driven buyers. See Technical Appendix for a full explanation of how belief-driven buying was measured. BRANDS GAIN 2x more than from Spectators 51%

21. E D E L M A N E A R N E D B R A N D SPEAK UP, AND THEY WILL SPEAK FOR YOU 21 Source: 2017 Edelman Earned Brand study. Q54. Now consider two brands. You like their products and services both equally, but one brand agrees with and supports (with time, money and considerable resources) your position on the issue you mentioned above. The second brand is silent on this issue. It has given you no indication of where its stands. For each of the behaviors listed below, please indicate how much more likely you would be take this action on behalf of the brand that supports your position versus the one that you like equally well but is silent on the issue. (Top 2 Box, much more and extremely more likely.) (Average of 4 items.), question asked of half the sample.14-country global total, by belief-driven buyers. See Technical Appendix for a full explanation of how belief-driven buying was measured. OF BELIEF-DRIVEN BUYERS Advocate for the brand Defend it against critics Criticize competitors when a brand supports their position on an issue vs. staying silent 2x more than from Spectators 48% BRANDS GAIN

22. E D E L M A N E A R N E D B R A N D SPEAK UP, AND THEY WILL PAY A PREMIUM 22 Source: 2017 Edelman Earned Brand study. Q53. We are going to present you with a series of choices and ask you to tell us the one you would make in each situation. Each choice entails you deciding among three brands of a product you really need. The first brand (1) agrees with and supports with time, money and considerable resources your position on the issue described above. The second (2) is silent on this issue. It has given you no indication of where it stands. The third brand (3) disagrees with you on this issue and supports with time, money and considerable resources those on the other side. Assume everything about the brands is the same or equal except for the specific difference mentioned in each question. For each set of choices please indicate which of the three brands you would mostly likely choose to buy. (Percent who selected Brand 1 in cost scenario 2.) Question asked of half the sample. 14-country global total, by belief-driven buyers. See Technical Appendix for a full explanation of how belief-driven buying was measured. OF BELIEF-DRIVEN BUYERS Will pay a 25% premium for a brand that supports their position on an issue 2x more than from Spectators 23% BRANDS GAIN

23. YOU HAVE TO ANSWER THEIR CALL. 23 To move beyond No Brand’s Land,

24. E D E L M A N E A R N E D B R A N D DON’T CO-OPT CULTURE. FIND YOUR CALLING.

25. E D E L M A N E A R N E D B R A N D CONNECTING YOUR BRAND TO AN ISSUE IN THE RIGHT WAY 25 Source: 2017 Edelman Earned Brand study. Q52. Think about a societal or political issue that is both controversial and that you feel strongly about. If you had to describe this issue, which of these categories would it fall into? Question asked of half the sample. Q49. There are many controversial societal or political issues that a brand can choose to weigh in on. Some of the issues may be ones that you feel the brand has an obligation to take a stand on and should take leadership role in addressing. Some may be issues you feel that the brand really has no license to address and should avoid becoming involved in. For each of the types of issues described below, please indicate whether you believe that a brand has an obligation to take a stand, or it is wrong for it to take a stand on this type of issue. (Net Obligation Score = Obligated minus Avoid), question asked of half the sample. 14-country global total, by belief-driven buyers. See Technical Appendix for a full explanation of how belief-driven buying was measured. WHAT ISSUES MATTER MOST? Some of the issues that concern belief-driven buyers: Immigration1 Gender equality2 The environment3 Economic policy4 Racial & ethnic divisions5 HOW DOES THE ISSUE AFFECT… ? 25 23 23 23 22 20 17 15 5 Your customers Use of your product Your employees How your products are made Your brand's physical environment Your brand's core values Communities in which you operate Your brand's heritage Society at large Strength of expectation that your brand must address (net obligation score)

26. E D E L M A N E A R N E D B R A N D 26

27. E D E L M A N E A R N E D B R A N D TALK LESS. ACT MORE.

28. E D E L M A N E A R N E D B R A N D STRONG RELATIONSHIPS REQUIRE A TRUSTED CORPORATE BRAND COMMIT, LIVE AND LINK YOUR BELIEFS 28 Source: 2017 Edelman Earned Brand study. Q51. If a brand is really serious about taking a stand on a controversial societal or political issue, where and how do you expect to see evidence of that stand? On a scale, where one means not at all important and nine means extremely important, how important is it that the brand’s position on an issue be demonstrated in the following ways? (Top 4 Box, Importance), question asked of half the sample. Q43. Do you know the name of the company that owns or makes this brand (Yes) Q44. Please indicate how much you trust the parent company that owns or makes the brand to do what is right, using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal” to do what is right. (Top 4 Box, Trust.) 14-country global total, by belief-driven buyers. See Technical Appendix for a full explanation of how the five relationship stages and belief-driven buying were built and measured. LINK Percent of belief-driven buyers who know and trust the corporate brand COMMIT Belief-driven buyers expect brands to contribute: 1 Money Time Influence 1 2 3 LIVE Belief-driven buyers say your brand’s beliefs should be evident in your: 1 Employees Day-to-day business activities Sourcing/manufacturing Advertising 1 2 3 4 72 75 87 INVOLVED INVESTED COMMITTED STRENGTH OF CONSUMER-BRAND RELATIONSHIP

30. E D E L M A N E A R N E D B R A N D 30 INVITE THEM TO ACT.DON’T JUST START A CONVERSATION.

31. E D E L M A N E A R N E D B R A N D INVITE PEOPLE TO ACT ON BELIEF, AND DRIVE CONVERSATIONS THAT EARN CUSTOMERS 31 Source: 2017 Edelman Earned Brand study. Q131-79. One last question about your favorite brand. Below is a list of people. In general, if you heard information about this brand from each of these people, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? “Peer sources” is a net of 134, 48, 70, 76; “Company sources” is a net of 131, 72, 135; “Celebrity/Influencers sources” is a net of 747, 78, 71(Top 2 Box, Very/Extremely Credible) Q58. How do you usually learn about where a brand stands on controversial societal and political issues? From among the potential sources of information listed below, select the top three that you rely upon most when it comes to finding out about a brand’s position. Question asked of half the sample. 14-country global total, by belief- driven buyers. See Technical Appendix for a full explanation of how belief-driven buying was measured. PEER-DRIVEN CONVERSATIONS ARE MORE CREDIBLE THAN CELEBRITIES AND COMPANY SOURCES Percent of belief-driven buyers who say each information source about brands is very/extremely credible PEOPLE RELY ON CONVERSATIONS AND THE MEDIA TO LEARN ABOUT A BRAND’S BELIEFS Where belief-driven buyers learn about where a brand stands on controversial issues 89 79 74 69 Peer sources Expert sources Company sources Celebrities/ influencers 1 Conversations with friends and family Newspapers, magazines, TV Your customers on social media Your brand’s advertising 1 2 3 4

33. BEYOND NO BRAND’S LAND 33

34. E D E L M A N E A R N E D B R A N D GOING BEYOND NO BRAND’S LAND 34 CO-OPTING CULTURE PUTTING OUT A POINT OF VIEW JUST STARTING CONVERSATIONS FROM FIND YOUR CALLING ACTING MORE THAN YOU TALK INVITING THEM TO ACT TO

35. E D E L M A N E A R N E D B R A N D BUYING ON BELIEF IS A FAST TRACK TO A STRONGER RELATIONSHIP 35 Source: 2017 Edelman Earned Brand study. Edelman Brand Relationship Index. 14-country global total, by belief-driven buying segments. See Technical Appendix for a full explanation of how the five relationship stages, the Edelman Brand Relationship Index and belief-driven buying were built and measured. 29 Edelman Brand Relationship Index STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP SPECTATORS 46 BELIEF-DRIVEN BUYERS INDIFFERENT INTERESTED INVOLVED INVESTED COMMITTED

36. YOU HAVE TO ANSWER THEIR CALL. 36 People are buying brands based on their beliefs

37. E D E L M A N E A R N E D B R A N D 37 DO YOU WANT TO STAY IN NO BRAND’S LAND? OR WILL YOU ANSWER THE CALL?

38. 2017 EDELMAN EARNED BRAND STUDY DATAAPPENDIX J U N E 2 0 1 7

39. E D E L M A N E A R N E D B R A N D -3 -- -1 +1 -2 +1 -3 -1 THE SEVEN DIMENSIONS IN 2017 39 STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP INDIFFERENT INTERESTED INVOLVED INVESTED COMMITTED Source: 2017 Edelman Earned Brand study. Dimensions. 13-country global total. See Technical Appendix for a full explanation of the dimensions of the consumer-brand relationship. STRENGTH OF EACH OF THE SEVEN DIMENSIONS OF THE CONSUMER-BRAND RELATIONSHIP Edelman Brand Relationship Index 2017 Global Average 37 The Edelman Brand Relationship scale measures the strength of the consumer-brand relationship across seven dimensions. The Index is calculated as an average of the seven dimensions. LAGGING LEADING Y-T-Y CHANGE 30 43 37 36 33 38 41 Acts with purpose Builds trust at every touchpoint Inspires sharing, invites partnership Listens openly, responds selectively Tells a memorable story Makes its mark Embodies unique character

40. E D E L M A N E A R N E D B R A N D CONSUMER-BRAND RELATIONSHIP ACROSS CATEGORIES 40 STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP BY CATEGORY Source: 2017 Edelman Earned Brand study. Brand Relationship Index. 13-country global total, by category. See Technical Appendix for a full explanation of how the Edelman Brand Relationship Index was built. *Categories added in 2017 Y-to-Y change 40 40 39 39 39 39 38 37 37 37 36 36 36 35 33 32 31 31 Automobile Luxury goods Fashion Financial services Retailers Social media *Entertainment Travel Foodand beverage *Personal technology Creditcards Mobile carriers Personal care Beer,wine andspirits Household products Utilities OTC medicines Perscription medicines -3 -1 -3 -1 -1 -4 n/a -2 -2 n/a -2 -2 -3 -2 -2 -1 -2 -3 Edelman Brand Relationship Index 2017 Global Average 37 Brand Relationship Index

41. E D E L M A N E A R N E D B R A N D CONSUMER-BRAND RELATIONSHIP BY COUNTRY 41 STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP BY COUNTRY Source: 2017 Edelman Earned Brand study. Brand Relationship Index. 13-country global total, by country. See Technical Appendix for a full explanation of how the Edelman Brand Relationship Index was built. *UAE added in 2017, so not included in the Global 13 total. Y-to-Y change -3 -1 -3 -1 -1 -4 n/a -2 -2 n/a -2 -2 -3 -2 -2 -1 -2 -3 Edelman Brand Relationship Index 2017 Global Average 37 Brand Relationship Index 52 48 43 40 39 38 38 34 33 32 32 31 31 29 China India *UAE U.S. Singapore Brazil Mexico U.K. Australia Canada Japan France Germany The Netherlands -1 -4 n/a - - -5 -1 1 1 - - -1 -3 -1

42. E D E L M A N E A R N E D B R A N D 42 44 37 30 Gen Z (18-22) Millennials (23-37) Gen X (38-51) Boomers (52-71) CONSUMER-BRAND RELATIONSHIP ACROSS GENERATIONS 42 STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP BY GENERATION Source: 2017 Edelman Earned Brand study. Edelman Brand Relationship Index. 13-country global total, by generation. See Technical Appendix for a full explanation of how the Edelman Brand Relationship Index was built. Edelman Brand Relationship Index 2017 Global Average 37 Y-to-Y change Brand Relationship Index The Edelman Brand Relationship Index reveals that consumer-brand relationships are strongest among Millennials, and strengthening the fastest among Gen Z. +4 -- -2 -2

43. E D E L M A N E A R N E D B R A N D 36 36 41 36 38 Low Income Middle Income High Income Female Male CONSUMER-BRAND RELATIONSHIP BY INCOME AND GENDER 43 STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP BY INCOME AND GENDER Edelman Brand Relationship Index 2017 Global Average 37 Y-to-Y change Brand Relationship Index The Edelman Brand Relationship Index reveals that consumer-brand relationships are strongest among those with high incomes and among males. -1 -- -2 -- -2 Source: 2017 Edelman Earned Brand study. Edelman Brand Relationship Index. 13-country global total, by income and gender. See Technical Appendix for a full explanation of how the Brand Relationship Index was built. Low Income = bottom 25%; Middle Income = middle 50%; High Income = top 25%

44. 2017 EDELMAN EARNED BRAND STUDY TECHNICAL APPENDIX J U N E 2 0 1 7

45. E D E L M A N E A R N E D B R A N D 2017 EDELMAN EARNED BRAND STUDY TECHNICAL APPENDIX 45 Methodology The sample How were the three types of belief-driven buyers identified? 1 How was the Edelman Brand Relationship Index built? The Earned Brand team 2 3 4 5

46. E D E L M A N E A R N E D B R A N D 2017 EDELMAN EARNED BRAND STUDY 46 14,000 RESPONDENTS 1,000 per country, nationally representative of age, gender, and region based on most recent country census data. 14 COUNTRIES Online survey in Australia, Brazil, Canada, China, France, Germany, India, Japan, Mexico, The Netherlands, Singapore, UAE, U.K., and the U.S. SURVEY TIMING March 31 – April 24, 2017 THE EDELMAN BRAND RELATIONSHIP INDEX Measures the strength of the relationship consumers have with the favorite brand they buy across 7 dimensions. Measures relationships across 18 brand categories. SOCIAL LISTENING We listened to consumer conversations on social media to understand the societal issues that matter most to consumers in those countries to help inform our analysis. METHODOLOGY GLOBAL SURVEY 2ND YEAR

47. E D E L M A N E A R N E D B R A N D 2017 EDELMAN EARNED BRAND | THE SAMPLE 47 COUNTRY INTERNET PENETRATION SAMPLE SIZE LANGUAGES QUOTA PARAMETERS AUSTRALIA 85% 1,000 English Gender, age & region BRAZIL 66% 1,000 Portuguese Gender, age & region CANADA 88% 1,000 English & localized French Gender, age & region CHINA 52% 1,000 Simplified Chinese (Mandarin) Gender, age & region FRANCE 86% 1,000 French Gender, age & region GERMANY 88% 1,000 German Gender, age & region INDIA 35% 1,000 English Gender, age & region JAPAN 91% 1,000 Japanese Gender, age & region MEXICO 45% 1,000 Localized Spanish Gender, age & region NETHERLANDS 94% 1,000 Dutch Gender, age & region SINGAPORE 82% 1,000 English & Simplified Chinese Gender, age & region UAE 91% 1,000 English & Arabic Gender, age & region & ethnicity U.K. 93% 1,000 English Gender, age & region & ethnicity U.S. 88% 1,000 English Gender, age & region & ethnicity 14-country global data margin of error: +/-0.8% (N=14,000), global index scores +/- 0.39 points (N=14,000). Country-specific data margin of error: +/- 3.1% ( N=1,000), country index scores +/- 1.56 points (N = 1,000). Category specific data margin of error: +/-2.7% (N=1,338-1,699), category index scores +/- 1.3 points (N=1,338-1,699), Millennial specific data margin of error: +/- 1.4% (N=4,654), millennial index scores +/- 0.6 points (N=4,654).

48. E D E L M A N E A R N E D B R A N D HOW WERE THE THREE TYPES OF BELIEF-DRIVEN BUYERS IDENTIFIED? 48 We developed a series of six nine-point questions to measure the extent to which beliefs affect people’s buying behaviors: We then classified respondents into three segments based on their responses to the above items: 1 Even if a company makes the product that I like most, I will not buy it if I disagree with the company’s stand on important social issues I have bought a brand for the first time for the sole reason that I appreciated its position on a controversial societal or political issue I have stopped buying one brand and started buying another because I liked the politics of one more than the other I have strong opinions about many societal and political issues. The brands I choose to buy and not buy are one important way I express those opinions If a brand offers the best price on a product, I will buy it even if I disagree with the company’s stand on controversial social or political issues [reversed scored] I have stopped buying a brand solely because it remained silent on a controversial societal or political issue that I believed it had an obligation to publicly address LEADERS JOINERS SPECTATORS Have strongly-held, passionate beliefs. The brands they buy are one important way they express those beliefs. Depending on the issue and the brand, they will change their buying behavior based on the brand’s stand. Rarely buy on belief or punish brands that take a stand. 1 2 3 4 5 6

49. E D E L M A N E A R N E D B R A N D HOW WAS THE EDELMAN BRAND RELATIONSHIP INDEX BUILT? 49 Respondents were asked to describe their relationship with their favorite brand in three categories, assigned to them at random from among the 18 categories examined in this research. The only stipulation placed on their brand choice was that the brand had to be one they currently own, use or purchase. • Automobile • Beer, wine, and spirits • Credit cards • Entertainment platforms • Fashion • Financial services • Food and beverage • Household products • Luxury goods • Mobile carriers • OTC medicines • Personal care • Personal technology • Prescription medicines • Retailers • Social media • Travel • Utilities Product categories included in the study 1. WHAT IS YOUR FAVORITE BRAND IN THIS CATEGORY, ONE THAT YOU CURRENTLY BUY OR USE?

50. E D E L M A N E A R N E D B R A N D HOW WAS THE EDELMAN BRAND RELATIONSHIP INDEX BUILT? 50 Respondents gave each of the brands seven ratings, from zero to five, depending on how deeply involved they were with the brand along each of the seven relationship dimensions. Embodies unique character Makes its mark Tells a memorable story Listens openly, responds selectively Inspires sharing, invites partnership Builds trust at every touchpoint Acts with purpose 2. PLEASE DESCRIBE YOUR RELATIONSHIP WITH THIS BRAND, ACROSS SEVEN DIMENSIONS. 11 2 3 4 5 6 7

51. E D E L M A N E A R N E D B R A N D THE SEVEN DIMENSIONS OF THE CONSUMER-BRAND RELATIONSHIP 51 HOW EACH DIMENSION IS DEFINED AT EACH LEVEL OF THE CONSUMER-BRAND RELATIONSHIP INDIFFERENT INTERESTED INVOLVED INVESTED COMMITTED EMBODIES UNIQUE CHARACTER Not much different from its competitors Different from many other products/services in the category Offers unique products/services Bigger than the products/services it delivers--has its own unique personality Embodies an idea or value or lifestyle I can relate to; helps me express something MAKES ITS MARK I buy this brand out of habit. I have no real attachment to or affection for it I go out of my way to buy this brand, even if it is not the cheapest or most convenient The only brand I will buy. If it is not available, I will do without until I can find it again My relationship with this brand goes beyond liking it as a product or service A positive force in my life. This brand represents a lifestyle or way of life that defines me. TELLS A MEMORABLE STORY I do not have any idea of what this brand stands for or about its heritage This brand has a story about what it stands for and its heritage I admire what the brand stands for and its heritage I can identify with the brand’s story and heritage I am part of the brand’s story; we share a heritage, a future, a set of values LISTENS OPENLY, RESPONDS SELECTIVELY I would not know how to go about reaching out to or interacting with this brand If I had something to say, I know I could get a message to the people behind this brand This brand often gives me opportunities to engage with it or to give it feedback and input I have communicated with this brand in some way I have ongoing interactions with this brand. It is part of my social circle INSPIRES SHARING, INVITES PARTNERSHIP Unware of what this brand is doing or saying I remember seeing some advertising/promotions, and sometimes see things about it in the news or online I notice and pay attention to what this brand is saying and doing when I see its ads, other content, or news about the brand I am likely to forward, share or repost news/online content about this brand, or share information about my experiences with it Has become part of my social life. I am likely to participate in promotions, engage with its content online, attend its events BUILDS TRUST AT EVERY TOUCHPOINT I do not really trust this brand I trust this brand to make good products/services at a fair price I trust that this brand makes business decisions with interests of its customers top of mind Makes all of its business decisions with the best interests of the broader society top of mind I would stick by and defend this brand even if I was disappointed, I have faith it will correct mistakes ACTS WITH PURPOSE Unaware if it supports any causes or has any social purpose beyond making good products/services Contributes to the greater good in some way, in how the product/service is made delivered, or by actively supporting social causes The brand’s greater purpose or the social causes that it supports are important and worthwhile This brand’s cause or social purpose is something that I share and also support Supporting this brand is one way I support a cause I believe in; because of this brand I have become even more actively engaged in the cause

52. E D E L M A N E A R N E D B R A N D The Edelman Brand Relationship Index was calculated by taking the average of the seven dimension scores and multiplying by twenty to convert the index to a 100 point scale. The 2017 Global Brand Relationship score of 37 represents the average Brand Relationship Index across the 42,000 (14,000 X 3) consumer-brand relationships analyzed. HOW WAS THE EDELMAN BRAND RELATIONSHIP INDEX BUILT? 52 37 2017 Edelman Brand Relationship Index Global Average 0-6 INDIFFERENT 7-26 INTERESTED 27-43 INVOLVED 44-69 INVESTED 70-100 COMMITTED STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP 3. CONSTRUCTING THE SCALE.

53. E D E L M A N E A R N E D B R A N D 4. DEFINING THE RELATIONSHIP LEVELS. HOW WAS THE EDELMAN BRAND RELATIONSHIP INDEX BUILT? 53 STRENGTH OF THE CONSUMER-BRAND RELATIONSHIP 2017 Edelman Brand Relationship Index An Edelman Brand Relationship Index score can vary from zero to 100. In working with the scale, we identified five unique relationship levels. The cut-points that define each level are displayed below. These relationship levels were empirically determined based on two criteria. The first was a correspondence between relationship level as determined by the Edelman Brand Relationship Index and respondents’ self-described level of attachment to a given brand. The second was how distinct the levels were when profiled against key marketplace behaviors of general interest to brands. The resulting relationship levels and cut-points represent an optimized result that captures both respondents’ explicitly stated level of relationship with a brand and their implicit level of relationship as defined by their willingness to buy that brand first as well as to advocate for and defend it. 0-6 INDIFFERENT 7-26 INTERESTED 27-43 INVOLVED 44-69 INVESTED 70-100 COMMITTED

54. E D E L M A N E A R N E D B R A N D THE EARNED BRAND TEAM 54 TONIA E. RIES Edelman Square Tonia is Executive Director of Edelman Square, a role that includes stewardship of the Trust Barometer, now in its 17th year, the Earned Brand research into consumer relationships with brands, as well as the development of new research initiatives. She leads the firm’s global knowledge agenda across practices, geographies and clients, and acts as a catalyst for new thinking and discourse on business in a multi-stakeholder society. Tonia has more than 25 years of experience in marketing, research, strategy, conferences, and media. DAVID M. BERSOFF, PH.D. Edelman Intelligence David is in charge of global thought leadership research at Edelman Intelligence, a world- class research and analytics consultancy. Before joining Edelman Intelligence, Dr. Bersoff served as The Futures Company’s Chief Insights Officer. In that role, he drove the research, data analysis, IP creation and product development strategy for all of their syndicated consumer insights offers, including the Yankelovich MONITOR. David holds a Ph.D. in social and cross-cultural psychology from Yale University. SARAH ADKINS Edelman Intelligence Sarah leads the operations side of all IP projects at Edelman Intelligence. Prior to joining the EI team, Sarah spent 8 years at Nielsen designing surveys, conducting data analysis and working closely with clients from all industries. She has 16+ years of experience in market research, with more than half of that spent in the brand and communications industry. Sarah graduated from Fredonia State University with a bachelors degree in business administration, specializing in marketing and communications. KISHA R. STOKES Edelman Square Kisha manages Intellectual Property assets for the firm’s top revenue-driving research studies, Edelman’s Trust Barometer and Earned Brand. She supports the Executive Director with day-to-day administration of company-wide IP related projects – including requests for data/insights, presentation development, insights/headlines review, data visualization, and other special projects. Kisha holds a Master’s of Science degree in Kinesiology from James Madison University. CODY ARMSTRONG Edelman Intelligence Cody manages the day-to-day operations of all Intellectual Property research conducted by Edelman Intelligence. He has five years of experience in the market research industry, with more than three of them spent on the IP research team. Cody’s background includes secondary research, where he conducted media analysis for clients across several industries. Cody holds a B.A. in Sociology from the University at Albany, where he also dual minored in Psychology and Business. JAMIS BRUENING Edelman Intelligence Jamis handles the data management, processing, and analysis for all IP-related projects run by Edelman Intelligence. An environmental scientist by training, Jamis came to EI with several years of research in an academic setting, where he studied climate dynamics and global environmental change. Jamis holds a M.S. in Environmental Science from Western Washington University, and previously graduated from Colgate University where he studied physics and geography.

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