The influence of warmth and competence

Chris Malone, Chief Advisory Officer

Dr. Nicolas KervynPost-Doctoral Fellow

Dr. Susan FiskeProfessor of Psychology

International Colloquium on Consumer-Brand Relationships

The Influence of Warmth & Competenceon Brand Relationships

©The Relational Capital Group 2010, All Rights Reserved 2

Basic Survival Questions:

1. Your intentions toward me? (i.e. friend or foe, WARMTH)

2. Ability to carry out intentions? (strong or weak, COMPETENCE)

The Warmth & Competence Model

A Universal Model of Human Social Perception


Warmth & Competence Stereotypes, S. Fiske (2002)

Sympathy

Contempt

Admiration

Envy

Universal Dimensions of Group Stereotype Perceptions

Source: TRENDS in Cognitive Sciences


Initial Brands Evaluated For Warmth & Competence

In collaboration with Drs. Susan T. Fiske and Nicolas O. Kervyn, leading social psychologists at Princeton University, a demographically balanced sample of 1,042 U.S. adults was surveyed by an independent research firm July 1-7, 2010.

©The Relational Capital Group 2009-2010, All Rights Reserved 5

Please rate on a scale from 1 to 10 how

important each ofthe following

characteristics is to you when considering a

purchase of that kind? Mean responses

Warmth & Competence Are Important for Brands

While both are considered important to purchase decisions, Competence was rated to be more so than Warmth across all categories.

8.0

8.5

7.0

8.2

7.5

8.5

7.2

9.0

Quick Service Restaurants Warmth

Quick Service Restaurants Competence

Gas/Convenience Retailers Warmth

Gas/Convenience Retailers Competence

Fruit Juice Products Warmth

Fruit Juice Products Competence

Pain Reliever Products Warmth

Pain Reliever Products Competence


Nearly all brands, except BP, are perceived to be more competent than warm.– Despite it’s recall troubles, Tylenol is still perceived slightly more favorably than Advil.

– BP is held in contempt, but Shell was also rated poorly relative to all other brands.

Brand Warmth & Competence Perception Map

McDonaldsBurger King

BP

Shell

TropicanaMinute Maid

TylenolAdvil

4.0

5.0

6.0

7.0

8.0

9.0

10.0

4.0 5.0 6.0 7.0 8.0 9.0 10.0Average Competence Rating

Ave

rage

War

mth

Rat

ing

SYMPATHY

CONTEMPT

ADMIRATION

ENVY


Strong Impact on Brand Loyalty & Purchase Intent

Brand Loyalty Impact & Predictive Analytics

Statistical analysis suggests a strong impact on both loyalty and purchase intent.– Overall, these measures have a .47 correlation to purchase intent and explain 46% of variance.

– Warmth measures showed greater impact than competence on loyalty and purchase intent.


Two Dimensions Stand Out From All Others

Deeper analysis revealed that two variables have a disproportionate impact.– “Is honest and trustworthy” and “Acts in My Best Interest” have major influence on loyalty.

– These are at the heart of all instinctive human trust and commitment, to brands or people.

Brand Loyalty Impact & Predictive Analytics


However, all brands fell short of expectations on critical warmth drivers of brand purchase and loyalty, like honesty and selfless intentions.

– This may be why even successful national brands struggle to develop lasting brand loyalty.

– A steady stream of corporate and brand scandals has only intensified consumer cynicism.

All Brands Fell Short On Honesty & Intentions


Another 20 Brands Evaluated in Follow-up Study

Source: TRENDS in Cognitive Sciences, 2007

Popular Mainstream BrandsNon-Profit Brands

Troubled Brands Luxury Brands

To further test our hypotheses, we studied another twenty brands in October 2010, examining four expected warmth & competence profile groupings with an additional 1,000 U.S. adult consumers.


When combined with the warmth and competence data collected in our Phase 1 study, a enlightening picture of brand warmth & competence emerges.

Brand Warmth & Competence Perception Map

Advil

BP - July

Burger King

McDonaldsMinute Maid

Shell

Tropicana

Tylenol

Campbell's

Coca-Cola

Hershey's

Ford

Citibank

J&J

Mercedes

Rolls Royce

Rolex

Cartier Gucci

BP - OctoberMarlboro

Exxon

Toyota

Habitat for Humanity

Salvation Army

Boys & Girls Clubs

Humane Society

Disabled Veterans

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2.0 2.5 3.0 3.5 4.0 4.5 5.0Mean Competence Rating

Mea

n W

arm

th R

atin

g


If we plot these indexes as opposing variables on a two dimensional map, the following relative positions emerge, shedding new light on brand emotions.

– While somewhat different than hypothesized, these findings clearly show that brands generate a very similar pattern of emotions to those predicted by SCM.

Stereotype Content Model Emotion Index Map

Campbell's

Coca-Cola

Hershey's

Ford

Citibank

J&J

Mercedes

Rolls RoyceRolexCartier

Gucci

BP Marlboro

Exxon

Toyota

Habitat for HumanitySalvation Army

Boys & Girls ClubsHumane Society

Disabled Veterans

-80

-60

-40

-20

0

20

40

60

80

-60 -40 -20 0 20 40 60Net Envy vs Sympathy Index

Ne

t A

dm

ira

tio

n v

s C

on

tem

pt

Ind

ex

Admiration

EnvySympathy

Contempt


Honest & Selflessness As Loyalty Threshold

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Campbell's

Hershey

's

Coca-C

ola J&J

Disable

d Am

Vet

s

Habitat f

or H

uman

ity

Humane S

ociet

y

Salvatio

n Arm

y

Boys

& Girls

Clubs

Mer

cede

s

Rolls R

oyce

Rolex

Cartier

Gucci

Ford

Citiban

kBP

Mar

lbor

o

Exxon

Toyot

a

0%

10%

20%

30%

40%

50%

60%Honest & Trustworthy Total Variance Explained

Honest & Trustworthy vs Total Brand Loyalty Variance Explained

We also found that honesty and selflessness play a dominant role in brand loyalty when they are poorly delivered, with a -.84 negative relationship.

– This suggests that consumers first judge brands on honesty and selflessness as a minimum threshold that must be met before other benefits can be considered.

Mea

n Br

and

Loya

lty R

atin

gTotal Variance in Brand Loya lty Explained


People the First Brands; Faces the First Logos?

Perhaps brand perceptions and behavior have been instinctively adapted from social constructs.


Brand to Company to People Linkage


Physical & Social SurvivalFood, Clothing, Shelter, Protection, Membership

Potential Funnel of Brand Purchase & Loyalty

Price of Entry Expectations

Blockage

Emotional FulfillmentComfort, Companionship, Identity, Hope, Accomplishment, Stimulation

Physical Comfort & Social ControlWealth, Power, Fame, Legacy

Brand Purchase & Loyalty Behavior

• Honest & Trustworthy

• Acts in My Best Interests

• Listens & Understands Me

• Reflects Well On Me

• Shared Interests & Values

• Makes Me Feel Better

• Is Popular With Others

• Delivers on Promises

• High Quality Assistance

• Has Specialized Expertise

• Communicates Effectively

• Attractive Appearance

• Consistent Experience

• Worth My Investment

• Helps Me Achieve Goals

Warmth Perceptions & BehaviorIntentions: Warm / Friendly

Competence Perceptions & BehaviorAbilities: Competent / Capable

Price of Entry ExpectationsD

eeper Level Benefits

• Friendly

• Responsive

• Efficient

• Knowledgeable

• Helpful

• Thorough

• Accurate

• Accessible

• Quality

• Value

• Appearance

• Consistency

• Effectiveness

• Credibility

• Identity

• Safety

Service Features & Benefits Product Features & Benefits


Implications & Future Direction

Implications

–These insights expand our knowledge of brand relationships and behavior

–Perhaps other human relationship insights can be applied to the study, management and marketing of brands.

–Features and benefits potentially a subset of warmth and competence

–Potential application to social media, customer service, brand recall management, consumer affairs policies, brand equity tracking, etc.

Future Direction

–Adapt and refine methodology specifically for use with brands

–Expand the range of brands evaluated using this approach

– Increase the portion of brand behavior explained by adding other variables

–Seek other collaborators to build on our study of brand relationships

Marketing

The influence of warmth and competence