Way to win a customer's heart

By DITA DE BONI

New Zealanders like their companies to think global, but act local.

That is the finding of a just-released survey of 1000 New Zealanders surveyed by NFO CM Research and Porter Novelli.

The survey shows that consumers feel tenderly towards companies that have strong community involvement, are perceived to be local, and have a reputation as good employers.

But while only 18 per cent rated "good returns" - dividends and capital gains from stocks - as worthy of respect, one in four respondents respected companies that put people ahead of profits.

Innovation, quality service and products are very important to how a company is perceived overall, says the survey, and young adults in particular rated companies favourably on the strength of their overseas connections.

Young people also signalled the most concern that companies demonstrate innovation and vision.

The survey found the three most respected companies to be the Warehouse, Fisher & Paykel and Air New Zealand, which are seen as home-grown and providing a quality product or service.

Respondents were given a list of 30 of New Zealand's largest companies and asked to rate their admiration for them on a scale of 0-10 (10 being highest). The average rating was 5.7, with the Warehouse rating top with 7.3.

Younger people tended to view the business community more positively, giving corporates an average rating of 6.

The Warehouse and McDonalds were seen as "caring and giving" by most respondents, while South Auckland-based Hubbard Foods and the Warehouse were judged top employers.

It is unclear what impact this year's first ever union action at Hubbards made to the results, the surveyors say.

While there were strong attachments to companies that worked within local communities and had local roots, such as Anchor and Sanitarium, the survey also showed that senior citizens were less concerned about what companies give back to the community.

Less than 40 per cent rated community involvement as an important attribute for businesses.

The same survey conducted in the mid-1990s featured the likes of Fletcher Challenge and Watties, but as those companies had been sold to foreign concerns and brand names had changed, their ratings had slipped.

Porter Novelli account director Cassandra Orange says New Zealanders admire companies for "going for it" internationally, but "we also want them to be part of where we live."

"In today's environment, the clear implication for business is: clothe your brand in the communities in which you operate."

Asked about the correlation between consumer intent and behaviour, NFO CM Research spokesman Murray Campbell said there was a relationship because the admired companies were also "successful in terms of profits, share price and market satisfaction."

He said perceptions were based on the consistency of advertising messages from a company over a long period of time, how the company reacted under pressure, as well as the consumer's experience with the product or service.