2015 City RepTrak The World s Most Reputable Cities

REPUTATION LEADERS NETWORK

2015 City RepTrak®

The World’s Most Reputable Cities

The World’s View on Cities: An Online Study of the Reputation of 100 Cities

RepTrak

is a registered trademark of Reputation Institute. Copyright © 2015 Reputation Institute. All rights reserved.

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About Reputation Institute

Reputation Institute is the world’s leading reputation-based research advisory firm, founded by Dr. Charles Fombrun and Dr. Cees van Riel in 1997.

Reputation Institute’s RepTrak ^® Research is the world’s largest and highest quality normative reputation benchmark database.

• 7 Dimensions of Reputation

• 10 Years of Data Indexed

• 40 Countries Measured

• 15 Stakeholder Groups

• 3,000 Companies per Year

• 6M Responses per Year

Our most prominent management tool is the RepTrak® model for analyzing the reputations of companies and institutions – best known via the Forbes-published Global RepTrak® 100, the world’s largest study of corporate reputations.

We enable leaders to make business decisions that build and protect reputation capital and drive competitive advantage

Knowledge Research Advice

Insight Strategy Activation Publication

Conferences Training

Information Analysis Presentation

The world leader in Reputation Management research

c

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Fernando Prado

Managing Partner, Reputation Institute

@fpradoRI @Reputation_Inst #CityRepTrak

TODAY’S SPEAKER

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• City RepTrak ^® methodology

• The most reputable cities

• Why is city reputation important?

Agenda

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Emotional Reputation

Rational Reputation

THE CITY REPTRAK® MODEL

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Supportive Behaviors

Value Creation Perceptions

Direct Experiences

Country Actions &

Communications

3rd-party Influence

Stereotypes

THE REPUTATION ECONOMY

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Stakeholder Group (Target): G8 general public (only people who were “somewhat” or “very” familiar)

City Selection:

– Largest populations – Largest GDP

– Cities which enjoy the highest amount of tourism

Data Collection Method : CAWI (online interviews) Data Collection Period: From February to March 2015 Sample: Over 19.000 consumers from G8 countries rating the 100 cities included in the study

2015 CITY REPTRAK® STUDY OVERVIEW

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• City RepTrak ^® methodology

• The most reputable cities

• Why is city reputation important?

Agenda

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SYDNEY

THE MOST REPUTABLE CITY IN 2015 IS…

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1 2 3 4 5 6 7 8 9 10

78,4

76,8 78,9

76,1

75,8

75,6

75,5

75,5

75,4

Sydney 79,1

Vienna

Venice Edinburgh Barcelona

Copenhagen

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval New in Top Ten 2015

2015 CITY REPTRAK® – TOP 10

Melbourne

Stockholm

Vancouver

Geneva

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Vancouver London

Sydney

Vienna Geneva

Copenhagen Vienna

Oslo

Rome Sydney

Barcelona

Venice

Florence

Oslo

Stockholm Florence

Barcelona

Melbourne Vancouver

Venice Sydney

Toronto

Stockholm

Vienna

Venice

Edinburgh Florence

London

Copenhagen Zurich

2013 2012 2011

2014

Florence Munich

Sydney Vienna

Venice

Vancouver Oslo

Barcelona

Montreal London

CITY REPTRAK® IN RECENT YEARS – TOP 10

1 2 3 4 5 6 7 8 9 10

2015

Sydney

Vienna

Venice Vancouver

Barcelona Melbourne

Stockholm

Geneva

Copenhagen

Edinburgh

REPUTATION LEADERS NETWORK

1 2 3 4 5 6 7 8 9 10

Tokyo

New York

Los Angeles

Seoul

London

Osaka Paris

Moscow Shanghai

Chicago

GDP ²

Population ¹ Tourism ³

Tokyo

Paris

Guangzhou

Bangkok London

Shanghai

Singapore

Seoul Istanbul

Jakarta

Delhi

Manila Dubai

Kuala Lumpur

Hong Kong Karachi

New York

1

Demographia World Urban Areas: 11th Annual Edition;

Global Metro Monitor Map (Brookings);

2015 MasterCard's Global Destination Cities Index

THE MOST REPUTABLE CITIES ARE NOT NECESSARILY THE LARGEST

Seoul Beijing

New York

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1 2 3 4 5 6 7 8 9 10

Vienna

Zurich

Auckland

Munich

Vancouver

Frankfurt Düsseldorf

Copenhagen Geneva EIU’s 2014 Global

Liveability Melbourne

Helsinki Vienna

Copenhagen Melbourne Toronto

Tokyo

Calgary

Zurich Vancouver

Adelaide

Sydney

Perth

Stockholm

Munich

Auckland Helsinki

Vienna Mercer’s 2015

Quality of Living

Monocle’s 2015 Most Livable Cities

BUT THE CITIES WITH THE BEST QUALITY OF LIFE ARE SIMILAR

Sydney

Berlin

Sydney

Vancouver

Reputation Institute Top Ten

REPUTATION LEADERS NETWORK

London Paris

Vancouver

Sydney

Florence

Cape Town

Venice

Chicago

New York

San Francisco Tokyo

Cambridge

World's Most Beautiful Cities

AS ARE THE MOST BEAUTIFUL CITIES…

Reputation Institute Top Ten

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IEP’s 2015 Global Peace Index

…AND THE SAFEST PLACES

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1-34

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

CITIES WITH A STRONG REPUTATION (70-80 POINTS)

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35-64

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

CITIES WITH AN AVERAGE REPUTATION (60-70 POINTS)

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65-99

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

100-101

Cities with a poor reputation (0-40 points)

CITIES WITH A WEAK REPUTATION (40-60 POINTS)

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Afghanistan Albania Algeria Andorra Angola

Argentina Armenia Australia Austria Azerbaijan Bahamas, The Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bhutan Bolivia

Botswana Brazil Bulgaria Burkina Faso Burma Burundi Cambodia Cameroon Canada Cape Verde

Chad Chile Evolution 2014-2015

Athens 11.8%

POSITIVE EVOLUTION OF CITY REPTRAK® IN THE LAST YEAR

Bogota 10.5%

Santiago 12.4%

Melbourne 9.9%

Karachi 14.0%

Mumbai 11.2%

Shanghai 10.1%

Singapore 9.9%

Hong Kong 9.3%

Seoul 15.1%

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Afghanistan Albania Algeria Andorra Angola

Argentina Armenia Australia Austria Azerbaijan Bahamas, The Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bhutan Bolivia

Botswana Brazil Bulgaria Burkina Faso Burma Burundi Cambodia Cameroon Canada Cape Verde

Chad Chile Evolution 2014-2015

NEGATIVE EVOLUTION OF CITY REPTRAK® IN THE LAST YEAR

Nairobi -7.1%

Brisbane -6.9%

Warsaw -4.9%

Abu Dhabi -4.4%

Taipei -4.3%

Perth -3.6%

Tel Aviv -3.3%

Munich -3.2%

Frankfurt -2.5%

Hanoi -2.4%

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There is a demonstrated correlation between the reputation of a city and the reputation of its country. In general, a city’s reputation tends to be higher than that of the country in which it resides.

THE COUNTRY’S REPUTATION DEFINES THE REPUTATION OF ITS CITIES

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Paris London

New York Rome

Vegas Tokyo

Barcelona Berlin

Washington DC Los Angeles Amsterdam

Moscow Venice

San Francisco

Madrid Toronto St.PetersburgFrankfurt Milan

Munich Miami

Chicago Montreal

Florence Hong Kong

Orlando

Vancouver

Boston

Brussels Osaka

Vienna

Sydney Edinburgh Athens

Dublin Zurich

Prague Dubai

New Orleans

Seattle Istanbul Jerusalem

Stockholm Singapore Copenhagen

Atlanta Budapest

Bangkok Melbourne

Shanghai Houston

Rio de Janeiro Beijing

Kiev Lyon

Cairo

Mexico City Helsinki Geneva

Lisbon Oslo

Seoul

New Delhi Warsaw

Buenos Aires

Abu Dhabi

Cancún Bucharest

Johannesburg

Baghdad Sao Paulo

Cape Town

Kuala Lumpur Santiago

Mumbai Taipei Brisbane Auckland

Manila

Hanoi

Kolkata/Calcutta Lima Mecca Perth

Tehran Nairobi

Santo Domingo Jakarta

Adelaide Caracas

San Juan Montevideo Macau

Bogota

Port-au-Prince

Gold Coast Monterrey

Guangzhou Karachi

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

25 35 45 55 65 75 85

Well-known cities with a strong reputation

Little-known cities with a strong reputation

Communicate

AND A CITY ALSO NEEDS TO BE WELL-KNOWN

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34.7%

37.7%

27.6%

35.3%

37.6%

27.1%

Weights 2014

n = 15477

IMPORTANCE OF THE REPUTATION DIMENSIONS

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10.6 8.0 7.5 6.8 6.6 11.8 9.0 7.5

Safety

Well-Respected Leaders

Social, Economic & Environmental Policies Well-Developed Political & Legal Institutions

Adequate Transport, Communications & Infrastructure

Advanced Economy 27.6%

Financially Stable & Future Growth Well-Respected Products & Services Business Environment

Technology

Headquarters of Leading Companies

Adj R² = 0,675 n = 15477

Beautiful City

Appealing Experiences Well-Known Personalities

Appealing Environment 37.7%

Effective Government 34.7%

7.2 6.9 6.8 5.7 5.6

IMPORTANCE OF EACH ATTRIBUTE

REPUTATION LEADERS NETWORK TOP TEN CITIES BY DIMENSION

Advanced Economy Appealing Environment

Stockholm

Melbourne

Sydney

Tokyo

Zurich

Geneva

Berlin

London

Copenhagen

New York

Effective Administration

1 2 3 4 5 6 7 8 9 10

Tokyo

New York

Berlin

London

Stockholm

Zurich

Geneva

Melbourne

Sydney

Hong Kong

Rome

Paris

Barcelona

Vienna

London

New York

Sydney

Amsterdam

Venice

Prague

1 2 3 4 5 6 7 8 9 10

1

2

3

4

5

6

7

8

9

10

REPUTATION LEADERS NETWORK

Very poor

Measures the admiration, esteem, trust and good feeling generated by one city relative to others.

Emotional Reputation (City RepTrak ^® Pulse):

Obtained by the sum of the scores for each attribute multiplied by the weight.

Rational Reputation (City RepTrak ^® Index):

City RepTrak

Pulse >

City RepTrak

Index

City RepTrak

Pulse <

City RepTrak

Index

Positive emotional halo

Negative emotional halo

CITY REPTRAK® MODEL: THE EMOTIONAL HALO

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GAP BETWEEN EMOTIONAL & RATIONAL REPUTATION

Venice

Florence

Athens

Edinburgh

Prague

New Orleans

Dublin

Cancun

Lisbon

Madrid

1 2 3 4 5 6 7 8 9 10

Las Vegas

Moscow

Tel Aviv

New York

Abu Dhabi

Los Angeles

Ryad

Tokyo

Washington DC

Bogota

1 2 3 4 5 6 7 8 9 10

63.5

66.8

58.6

69.9

68.5

61.8

67.5

59.0

64.4

68.0

71.1

53.6

55.3

76.1

62.3

71.3

54.1

77.4

68.6

50.6

-6.7

-6.5

-5.5

-5.3

-3.7

-3.2

-3.1

-3.1

-3.0

-2.9 11.9

6.7

6.6

5.7

5.6

5.3

5.2

5.1

5.1

5.0 Emotional Halo

(Pulse-Index)

Emotional Halo (Pulse-Index)

Country RepTrak ^® Index 2015 – Top 10 / Bottom 10 emotional halos

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North America 67.0

Europe 69.7 Asia-Pacific 59.7 Africa 51.4 Latin America 56.7

*Average score of the cities measured in each region.

Of the top 20 cities in the ranking, 15 are European, with Stockholm in the lead.

Cities in Northern Europe obtain better scores in reputation as they are well

perceived in the rational dimensions but better emotional halos are reserved for those with more historical tradition.

EUROPEAN CITIES STAND OUT ON THE GLOBAL STAGE …

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SYDNEY AND MELBOURNE LEADING THE RANKING

Sydney

Melbourne

Australia – ranked in the top five of the most reputable countries over the last six years – is where Sydney and Melbourne, the two most reputable cities in 2015, are located.

Both cities are the most heavily populated in the

region and stand out for the public’s perception of

the quality of their institutions, strong economy

and attractive environment.

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From Canada – the reputation champion in the Country RepTrak ^® 2015 –

Vancouver is the highest ranked Canadian city to make the list. Vancouver is consistently named as one of the top five worldwide cities for livability and quality of life.

VANCOUVER, THE CANADIAN REPRESENTATIVE

REPUTATION LEADERS NETWORK US CITIES HAVE LOW EMOTIONAL HALO

San Francisco is the highest ranked city from the USA, placing 24 ^th , but New York performs better in the rational dimensions (among the top ten cities in Quality of

Institutions, Advanced Economy and Appealing Environment).

Most of the US cities included in the survey have a

negative emotional halo, except New Orleans.

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ASIAN CITIES AT THE TOP OF THE UPWARD TREND

Asian cities achieve the highest reputation

improvements, though they still have weak scores.

Seoul is the city with the highest reputation score

improvement (+15.1% over 2014), followed by Karachi (+14.0%).

While China as a country improves its reputation, its main cities do as well: Shanghai (+10.1%), Hong-Kong (+9.3%) Macau (+5.8%) and Guangzhou (+5.0%).

Mumbai (+11.2%) and New Delhi (+9.3%) improve their reputations after the declines of the previous year,

following India’s trajectory.

REPUTATION LEADERS NETWORK

• City RepTrak ^® methodology

• The most reputable cities

• Why is city reputation important?

Agenda

REPUTATION LEADERS NETWORK

As in the case of companies, countries and cities also have their own reputation which has an impact on their economies.

Places with a good reputation welcome more tourists

Places with a good reputation attract FDI

Places with a good reputation attract foreign knowledge & talent

Places with a good reputation increase exports

Places with a good reputation improve their public diplomacy

WHY IS PLACE REPUTATION IMPORTANT?

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The good reputation of a city strongly correlates with an increase in the supportive behaviors shown towards the city, such as visiting the city, living or working in the city, or deciding to invest in the city.

A BETTER REPUTATION LEADS TO STRONGER SUPPORT

Sydney

Baghdad

Tehran

REPUTATION LEADERS NETWORK

Visit 0.73

Invest 0.72

Live 0.74

Work 0.74

Buy 0.75

Attend/organize events

0.71

VALUE CREATION: REPUTATION & SUPPORT

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Visit Invest Live

SUPPORTIVE BEHAVIORS TOWARDS CITIES – TOP 10

Work Buy Attend/organize events

REPUTATION LEADERS NETWORK

• City reputations can be measured in a similar way to those of people or companies.

• The overall reputation of a city is an emotional perception constructed through direct

experience, its own communication, the perspectives of third parties and generally accepted stereotypes.

• The overall emotional perception can be explained through different attributes and dimensions.

Three main dimensions explain a city’s reputation:

• Quality of life (Appealing Environment)

• Quality of institutions (Effective Administration)

• Level of development (Advanced Economy)

• Cities with a strong reputation are positively perceived in all three dimensions.

• Stockholm lead the Effective Administration dimension

• Tokyo is the best perceived city in Advanced Economy

• Rome is the city with the best performance in Appealing Environment

• Reputation has a strong impact on the supportive behaviours of stakeholders that improve a city’s economy: tourist arrivals, foreign direct investment, exports, etc.

CONCLUSIONS

REPUTATION LEADERS NETWORK

• A city’s reputation is in great part determined by the country’s reputation and is strongly related to its familiarity.

• Sydney is the city with the best reputation, followed by Melbourne. Both are in one of the top five most reputable countries. Both cities stand out by the perceptions of their Effective

Administration, Advanced Economy and Appealing Environment and are among the most livable cities in the world.

• In fifth place, Vancouver is the top Canadian city in the ranking, which is consistently named as one of the top five global cities for livability and quality of life.

• 15 cities of the top 20 are European, with Stockholm in the lead. On average, Northern European cities have higher reputation scores.

• San Francisco is the top US city in the ranking, but New York performs better in the rational

dimensions (due to its negative emotional halo). Most of the US cities included in this survey have a negative emotional halo, except New Orleans.

• Following the trend of Asian countries (Country RepTrak® scores), the Asian cities in the study achieve the greatest reputation improvement, although most of them still have weak scores.

CONCLUSIONS (2)

REPUTATION LEADERS NETWORK

PERCEPTION

Bad

Good Good

REALITY

Communication is required to capitalize on good reality and overcome poor

perceptions

Change is required to alter

‘reality’ and minimize reputational risk

Bad

REPUTATION MANAGEMENT

REPUTATION LEADERS NETWORK

The report and recording from this webinar can be found on Reputation Institute’s website:

http://www.reputationinstitute.com/research/City- RepTrak.aspx

Visit our website: www.reputationinstitute.com Find us on Twitter: @Reputation_Inst

CITY REPTRAK®