A Good Rep Goes a Long Way


A study of corporate reputation released this week gives further evidence that a company’s good reputation goes a long way toward improving the bottom line and that effective communication about a company has a positive impact on reputation.

This is Public Relations 101 stuff. Those of us in the PR business have known these things all along, but in this age of “communication ROI,” the Reputation Institute’s 2010 U.S. Reputation Pulse gives us some of the firepower we need when trying to convince business leaders that what we do adds tremendous value.

The consulting firm’s study finds that corporate reputation has a positive and direct link to consumers’ attitudes and behaviors. Comparing the bottom 10 and top 10 companies that the study ranks by reputation, consumers are 300% more likely to verbally support and give benefit of the doubt to companies with good reputations, 200% more likely to consider those companies’ products and 350% more likely to purchase their products.

The study also finds that a consumer who has encountered a company’s marketing, branding, public relations or social responsibility messages on average rates the company higher regardless of the company’s reputation ranking. Even low-ranked companies benefit from telling their side of the story directly to consumers. Obviously, this has huge implications for social media, which bypass traditional media outlets to reach consumers directly.

By the way, the top five companies ranked by reputation in the study are Johnson & Johnson, Kraft Foods Inc., Kellogg, The Walt Disney Company and PepsiCo. The bottom-ranked company is financial services firm AIG. Corporate reputation rankings were determined in an online survey that averaged perceptions of trust, esteem, admiration and good feeling.

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One Response

  1. […] Image: post author – Robert J. Holland […]

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